My superannuation strategy | 2021
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- Опубликовано: 8 июл 2024
- I share my superannuation strategy as of October 2021. Planning to take advantage of my unused concessional contributions. Sign up to my weekly newsletter: sanjee.substack.com
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Twitter: / sanjeesen
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TikTok (yes really): / sanjeesen2020
My website: www.sanjeesen.com
Links:
MySuper comparison site (Australian Government): www.ato.gov.au/Calculators-an...
The Super product I use: hostplus.com.au/indexed-balanced
Unused contributions: www.ato.gov.au/individuals/su...
Superannuation calculators: www.australiansuper.com/tools...
ATO site on superannuation: www.ato.gov.au/individuals/su...
Timestamps:
0:00 - Intro
2:02 - My situation (background)
4:24 - My strategy
5:22 - Carry forward concessional amounts
6:03 - Estimate of how much I’ll finish with
6:28 - Where am I investing my super?
7:53 - What should we try and achieve in these strategies?
8:50 - Risks of my strategy
10:40 - No I’m not doing SMSF (or ever)
11:20 - What should you consider?
My other superannuation videos:
Super Basics: • How To Optimise Your S...
Super Levers: • 3 Things You Should Ch...
My HECS Debt strategy: • Video
My setup (Australian Amazon Affiliate links):
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Useful links:
Australian Government website on personal finances: moneysmart.gov.au
Disclaimer:
The information provided in this video is general in nature only and does not constitute personal financial advice. You should also consider seeking the advice of an investment advisor who holds an Australian financial services (AFS) licence or is a representative of an AFS licensee. Be sure to work with someone who understands your investment objectives and tolerance for risk. Your investment advisor should understand these products, be able to explain whether or how they fit with your objectives, and be willing to monitor your investment alongside you. There are some Amazon Affiliate links above - if you purchase from there, at no additional cost to you, I will earn a small commission for each sale. 
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I'm glad that I was one of the 5 guys stuck to the end of the video :). I've learnt so much about super savings strategy through this video than reading about it. I didn't know I can check the amount for concessional contributions on ATO website, until now. As always, that you very much Sanjee for the well informed videos.
I think you need to read a study or two on risk. You should be invested in higher risk assets. I'm 51 and still aggressively invested. The only reason you'd be slightly conservative is because you intend to buy a house with some of it. Such a great idea maxing out concessional contributions-wish I'd started earlier. If you max out your contributions for 20 years you will have over 1.3 million. Thats assuming a real return of 7% (if you aren't getting 10% returns you really need to change funds). !!!! There is plenty of advice around encouraging young people to opt out of 'balanced growth ' funds, for this very reason. I'm not sure what it is about Australian finance content, but usually its overly conservative and dated. Love the style of the videos. (fellow Australian btw-Melbournian to boot).
Wow i didnt know about unused concessional contributions!!!! Thanks you Sanjee
thank you thank you!
Great Video
Carrying forward unused concessional contributions is relatively new, I think you could carry forward 2018-19 during the 2019-20 fy. My wife and I are using as much of it as makes sense. The tax advantages via salary sacrifice is the difference between the 15% super tax and whatever margin you're in, in our case mainly 32.5%.
SMSFs are good for people with assets that they can put into super and get a tax deduction for it.
You can do this with direct shares or a commercial property for example.
They still hold the same asset (property or shares), but by transferring it into a SMSF they can benefit from a tax deduction now (based on the market value of the investment) and then receive the earnings from the investments tax free in retirement as a pension. You can't do that if you have a retail fund. And if you hold your investments in your personal names in retirement, the earnings are counted as taxable income. Depending on your tax rate, you may have to pay tax on those earnings. Bear in mind the first $20k you earn is tax free.
appreciate what you are doing mate!
My pleasure!
I had a chuckle when you said for the 5 people left watching thinking woohoo it’s me 😂 Thanks for all your great content:)
you should be a school teahcer. very good at explianing and calm and groudned
Having some good income years so I am maximising concessional carry forward rules. In 3 years I should have cleared them!…. If the good times continue to roll…. Balanced growth option.
Hi I invest my super switched two members direct in my Australian super they have low fees and from the 1st of April 2023 their fees are coming down which make them very attractive to pick your own etf like the S&P 500 nasdaq-100 and vas Australian shares and if you so choose you could even buy a percentage of individual stocks
Trust me, you tube as reliable as half the financial planners out there, also some of the fees are ridiculous
Should buying a home first more reasonable before contributing to super?
If you have a basic knowledge of investing an etf you should consider buying etf investing in your super fund check out the fees and the pros of tax within Super
Is that better than just use balance option?
@@saauuzza if you have more than say 10 years until retirement get out of balanced options ASAP. Its getting you nowhere. Just get into a High growth fund.
Hi Sanjee, you talked about catching up with "Unused concessional contributions". Let's say, I have the last 4 to 5 years with different amounts unused each year. Can I contribute for the earliest year this year and contribute for the second last earliest year next year and so on. And if you can kindly point out how I can do it. Thank you very much in advance. Mya
Hostplus index balanced 🙂barefoot is legendary
Why balanced? Are you old with a small amount of super?
@@AussieZeKieL good question .one reason is it is the cheapest fund in all of oz. But that's not all Reece 🙂. Only 20 percent of the assets are invested in defensive , while it is called balanced it is leaning towards growth. Over all I feel it's a decent fund .
Hi Sanjee I am a fan of your content. May I ask if you’re happy so far with the performance of your Hostplus Balanced Index fund? I’m considering switching over from Rest Super
Any balanced fund will have anaemic returns. Even the government recommends you get out of them-depending on your age, of course.
Hi Sanjee, could you talk about why you chose a Balanced Super option over a High Growth one? Cheers.
Because he is ill-informed.
Keep spreading the word Sanjee :)
Thanks Alex!
Excellent
At your young age, why have ANY funds invested in a passive way within super (i.e. 25%)? You have no ability to access it for many more years (unless you meet one of the very few conditions i.e. terminal diagnosis), so between now and when you reach 60 that proportion of your super investments is not working for you much at all. A stash of cash in the bank for a 'buffer' is accessible in an emergency, but in super it's not. Perhaps you could explain what I am not seeing? Does the Balanced Index return a net return that is equal or better, long term (which, being young you have time up your sleeve) than a 100% Share allocation? Or 100% Share Index?
For me, I salary sacrifice because it’s money I know I DO NOT need right now and get by just fine without out.
Also if I salary sacrifice an extra 5% of my wage, I add about $90pw to my super, but I only lose $60 from my take home pay.
Because it’s a before tax contribution.
So I see it as “free money” in the long run 😂
The tax savings is the main advantage which can be significant if you are in the higher tax brackets. Not sure on this one but it may reduce your taxable income and thus your Medicare levy as well as the hecs repayments for the given year .
@@jacklathey5223 you didn't understand what he was saying.
@@annaelmo9357 you didn't understand what he was saying either.
Exactly!! My super sat spinning its wheels in a balanced fund for years. Its cost me nearly 100k by my estimation. I know this is only a RUclips channel, but wow, if finance isn't you bag... next.
Hey Sanjee, i think i saw someone who looks like you at Starbucks near Highpoint.
Did you get his autograph?
@@alexhickey7452 i should have. Haha
Hey mate, yep that was probably me! Feel free to swing by and say hi next time 👍
@@SanjeeSen i thought that Hostplus balanced consistenly achieved higher returns (net fees) compared to indexd balanced?
90/10 would be better at your age
Thanks for sharing the insights
What are your comments about Australian super ?
Learned something new. about carry forward concessional contributions in Super.
Great video
Thanks.
Wow. Why is your hecs debt so high?
Hey Dev, yeah I did an undergrad and a masters, seems to have added up for me.
@@SanjeeSen I see.
Great video. Does anyone know how this concessional contribution can be achieved? Do I need to talk to my super fund first and then , setup salary sacrifice with employer? Thanks.
Yes, ask your employer if they offer the salary sacrifice option. If they don't., you can do it as a lump sum "prior" to June 30 and you will get the tax portion refunded. The diffference between your margainal rate and 15%. Remember to keep the TOTAL (employer and your own) under $27500 for the year.
You can also make regular personal contributions to your super fund. Just make sure you do a Notice of Intent to Claim a Tax Deduction at year-end. You send this to the super fund. Then you can claim the contributions as a tax deduction in your return.
The ATO works it all out each year in respect to contributions and carry forward amounts.
You lost me when you mentioned Vanguard.
Talking about super fees, I recently received a letter from my retail fund stating they have been taking nearly 2 and a half months worth of my employee contributions... in investment fees every year! 17 years, working my arse off away from home, through covid - and the first 2 and a half months of my contributions each year, were being donated to a big 4 bank!
PLUS!!! they were rated as 'Under-Performing'. I was livid - still am. Thanks for nothing BT.
(edit) Cool videos btw! Straight forward and relevant information. Thankyou :)
Felt you mate. My super was with BT and I didn’t know that they did such a bad job and they actually got named the worst 10 super in Australia by the gov last year!!!
After I realised that, I did some research and now switched to unisuper now. So far so good. I plan to review my super performance at least bi-annually if not annually :)
Great videos! So easy to understand. And funny , which helps keeps my attention haha
Maxing out my contributions was one of the best decisions I made about 7 years ago, it’s really boosted my balance. I am much closer to retirement than you though!
Another insightful video, Sanjee. Thanks! Also found you on Instagram haha. Take care mate