The initial purpose of superannuation is to give Australian citizens a retirement investment plan. Aside from that, you can do so much more with your superannuation to help you in your later life.
With the right superannuation and budget advice, you can allocate your super funds into investments that will help sustain your life once you retire. Read through this article and find out what kind of investments you can make with your superannuation.
Defining Superannuation
Before diving into the different investments you can make, it’s best to have a clear description of superannuation first. Superannuation is essentially a retirement investment plan or pension program that accumulates your contributions throughout your career.
By the time you retire, you will have enough funds to carry on with your life and other passions because of your superannuation. You can also make other sustainable investments to regulate your cash flow even after retiring through your super funds.
Superannuation Contributions
Generally, a superannuation contribution means taking 10 per cent of your salary every year. You can make many types of contributions for your superannuation: concessional contributions, compulsory contributions, salary sacrifices, tax-deductible contributions, non-concessional contributions, and more.
With the contribution choices available to you, it’s better to get in touch with a money coach or wealth management advisor. They can help you seek out the best contribution arrangement that works for you.
Superannuation Investments
With the basic understanding of superannuation you now have, let’s see which areas you can allocate your super funds to have sustainable investments:
Self-Managed Super Funds (SMSF)
A self-managed super fund (SMSF) is an investment where you put money into your private super account instead of placing it into a retail or industry fund. The benefit of an SMSF is you have the freedom to choose which type of investments or insurances you’ll put your money into with your super.
Although the SMSF may sound appealing, managing your super funds along with all its risks—such as no return on investments, losing money through theft or fraud, or losing insurance—requires a lot of work. It’s best to get a financial advisor to help you decide.
Property Investments
You can make a more secure and sustainable investment by putting your money into property investments through your super. There are many ways to acquire real estate through private agencies, but the First Home Super Saver or FHSS is a scheme the government offers.
This scheme will allow you to acquire a property through your super fund and save money simultaneously. Applying for the FHSS, since it’s directly linked to the government, will also help you with concessional tax treatments from your superannuation.
Business Investments
Another investment you can do with your super is to put your funds to buy a business. Investing your super into owning a company can get you additional tax returns by running business operations.
There are many areas of business that you can invest your money into, and the country’s highest-grossing industries in Australia come from the service sectors. It includes telecom and property rentals, to name a few. However, there is a range of businesses you can invest in to earn money while doing what you’re passionate about, even after retiring.
Time to Find Financial Assistance
Once you hit your retirement age, it’s not enough to have a retirement investment plan. Sometimes, your funds aren’t sustainable and will eventually run low if you don’t invest them correctly. It’s essential to find the best financial advisors with all the many types of contributions and investments you can make with your superannuation.
Apply for sustainable investments and get one of the best financial advisors in the Gold Coast. Call us not at New Wave Financial Planning to give you a range of financial advice in many different areas. We cater to budgeting & cash flow, superannuation, building wealth, insurance, estate planning, retirement planning and more.
