Welcome to 2024!
How are those new year’s resolutions going? If you are like most of us, you may have promised yourself that you would look after your health, learn a new skill or take up a new hobby, and maybe even to take better care of your finances. As accountants and business advisors we can help you achieve your financial goals (which usually helps you achieve the other ones too!).
Today, I wanted to start the new year by talking about superannuation. For many, it’s not the first thing that comes to mind when you are trying to improve your financial position, however, it is often one of the most significant investments each of us has!
Young Australians in particular, often have more invested in superannuation than in any other investment! They just don’t think about it because retirement may seem like a distant event. However, that’s precisely why you should pay attention to it now. If you understand and actively manage your superannuation investments now, the power of compounding will significantly improve your retirement savings. And even if you don’t consider yourself to be “young”, it’s never too late to make better financial decisions.
What do you know about your superannuation fund and its investment options and choices? Are you simply in their “default” or “balanced” investment option? Is that the best choice for you and is it aligned to your risk tolerance and long-term goals? Being proactive with superannuation and making informed investment choices not only improves your own financial literacy, but it also ensures that your money is working efficiently for you. Understanding where your money is invested, and the potential returns will empower you to take control of your financial future and set you up for a more secure retirement.
You may also want to consider contributing regularly to superannuation. These contributions are (in most cases) tax deductible and have a snowball effect, increasing your superannuation exponentially over time.
Of course, this article is general advice only and it does not take into account your personal objectives, financial situation or needs. You should seek professional advice tailored to your own situation. Paying attention to all aspects of your financial position can pave the way for a brighter financial future.
Our professional team at UHY Haines Norton CQ Pty Ltd can assist you with all aspects of financial advice.
