Category: Finance Advice

When it comes to super, a lot of people don’t really know how their funds are being managed. Although most decent accountants can advise you on what you should be doing with your super, it is important to have a decent understanding of the Australian super system.

Although it is very difficult to access your super before you retire, you can choose how and where it is invested. If you have a substantial amount of super, then you should definitely consider looking into the types of super funds out there. Choosing one which suits your personal situation can cause your super account to grow substantially over time. Some of the more popular super fund options include:

My Super:

My super is a government run superannuation program designed to become the default fund for people working for new employers. It has relatively low fees when compared to most other types of funds, making it a good choice for people with low super balances. However, it only provides basic insurance cover and one investment plan.

Industry Super Funds:

Most industry super funds were developed by trade corporations or members of a specific industry to provide super investment services to workers in that industry. Most industry super funds work on a not for profit basis, which means that your fees are generally small. A lot of larger industry super funds are now open for public investment, and some people argue that they have higher returns than other types of fund. Note that investment options are usually limited to a few choices with industry funds.

Read More
Salary Sacrifice

Many financial planners agree that salary sacrificing is an excellent way to save and avoid paying high levels of tax, at least on some of your income, but is it really better than paying down your mortgage?  Andep Financial planning advice usually offers many ways to save money and reduce your costs; but whether this is one of them will depend on your specific circumstances.

For instance, if you are in a very high tax bracket, it can certainly pay you to salary sacrifice, especially if having done that, your income is then in a lower tax bracket level.  But it is not always the best thing to do as far as making the most of your dollars goes. It absolutely depends on your individual circumstances, which is why it is best to consult with a financial advisor; one who works independently of any company such as a bank.

Read More