3 Things To Consider About Your Personal Superannuation
Tuesday December 9, 2008
You personal superannuation will likely need to provide for an extensive retirement, so it is important to be prepared. Just having a large amount of money isn't enough - you will also need to know how you are spending it. Nevertheless, getting money isn't exactly easy, either. The following are a few considerations you may wish to make to plan for retirement.
How much are you paying in fees?
The more you pay in fees, the less there will be in your personal superannuation to invest with. Some types of superannuation funds tend to charge percentages of your personal superannuation balance. When you have a small balance, this can be good value, but once your savings have increased you may find the fees to be incredibly expensive. An ESUPERFUND self managed superannuation fund charges a flat fee, so those with large super balances who know how a superannuation fund works and can manage their own investments may be interested in an ESUPERFUND self managed superannuation fund.
Will you have repaid your home loans and car loan (and will you have these assets)?
If you won't have repaid your home loans and car loans by the time you retire, then you will need to factor in their costs to your personal superannuation amount. Also, if you are going to be renting, then remember that this could mean much larger ongoing costs than someone who will quickly finish repaying their home after retirement. Owning a home and car before retirement can mean you will need far less in your personal superannuation to get by.
What will you do in retirement?
You need to know what you intend to do in retirement and what it will cost you. Don't just rely on marking time with TV or reading - you'll want more eventually. If you think there is any chance at all that you'll want to travel, plan for it before you retire. Deciding to do this once you are already retired could lead to making rash decisions based on relieving boredom rather than actually being financially capable. You shouldn't plan to just survive in retirement. You'll need to have a life as well.
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