At BND Financial Services, our financial planner can help you:
- Consolidate your superannuation, if you have more than one super fund this may help avoid paying unnecessary fees
- Determine your attitude to risk and ensure you are invested in line with your risk tolerance
- Assist with the many different investment options and superannuation funds including Self Managed Super Funds (SMSF)
- Help maximise your contributions to superannuation
- Recommend retirement planning strategies to help secure your financial future
What is Superannuation?
Superannuation is a vehicle to help fund your retirement. Employers are required to pay employees 9.5% of their salary into their nominated super fund.
The main advantage of superannuation is the concessional tax environment with a tax rate of 15% which can be less than an employees marginal tax rate.
Your employer may have a default superannuation fund however you are entitled to choose your own superannuation fund. If you have chosen your own fund you will need to provide your employer with a super choice form which is available from the Australian Taxation Office (ATO).
How is your Super Fund invested?
Your money is invested by your superannuation fund and may be invested in growth assets such as Australian Shares, International Shares and Property, or less risky assets such as cash and fixed interest.
Common investment options in most super funds and the investment allocations are:
- Cash/Fixed Interest – 100% in cash or fixed interest investments
- Conservative – 70-85% in cash and fixed interest with a small amount in growth assets
- Balanced – 60-70% in growth assets and the remainder in cash and fixed interest
- Growth – 80-90% growth assets and a small amount in cash and fixed interest
If you wish to take more control of your superannuation you may choose your own investments including direct shares or property. This can be achieved in some retail super funds or in a Self Managed Super Fund (SMSF).
While your employer is required to pay 9.5% of your salary into superannuation you are able to make additional contributions. Your employer may allow you to make salary sacrifice contributions which are paid before you are taxed and are only taxed at the maximum of 15% when the contributions are in your superannuation fund.
You may also make after tax contributions known as non concessional contributions. These contributions are not taxed when they are received by your superannuation fund as you have already paid tax when you were paid by your employer. These contributions are subject to maximum amounts known as ‘caps’ which are often changing each year.
To request a no cost, no obligation appointment with one of our experienced financial planners, please give us a call (03) 6344 3899 or complete the contact form below: