How To Optimise Your Superannuation Strategy
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- Опубликовано: 8 июл 2024
- Superannuation - the basics, what the Barefoot Investor says and some risks associated with it. Sign up to my weekly newsletter: sanjee.substack.com
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Timestamps:
0:00 - Intro
1:18 - Superannuation Basics
2:44 - Australian Super Example
3:47 - Putting extra into superannuation
5:50 - Tax savings estimate
7:15 - Consolidate your accounts
8:40 - Use low fee super accounts
9:55 - Super comparison sites
10:16 - Super account I use
10:59 - SMSF Lite option
13:18 - Increase super contributions
14:48 - Risk: Can’t touch the money
16:35 - Legislation/government risk
19:35 - Future videos
Moneysmart Superannuation: moneysmart.gov.au/how-super-w...
Moneysmart Superannuation (2): moneysmart.gov.au/how-super-w...
The super account I use: hostplus.com.au/indexed-balanced
Paycalculator website: paycalculator.com.au/
Direct Investment option (Hostplus): hostplus.com.au/investment/un...
My setup (Australian Amazon Affiliate links):
Canon 80d camera and lens: amzn.to/2He8SS6
Rode Main mic: amzn.to/3t1F2Uk
Rode mic (lapel): amzn.to/2TdeDBX
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 nearing 60 which is my preservation age. Instead of retiring completely I will go on an income stream via my super and drop my working hours thus being semi retired. I'm not eligible for the aged pension until age 67 so until then I'll still work a few hours per week. I've put my money into VAS and VGS ETF'S instead of a bank account as banks don't pay decent interest anymore. I'm also taking full advantage of salary sacrifice putting well over 15% into my super thus reducing my income tax too. My super is growing really well now. I'm also fortunate to work in the disability sector where I can also take advantage of salary packaging which increases my take home pay. Be sure to nominate your life partner (husband/wife etc) as 100% beneficiary in your super otherwise any other person nominated ie: your kids will be taxed on the money left upon your death if you nominate them. Your husband/wife etc isn't taxed at all. No one tells you this however! The tax laws are different regarding this. Good advice as per usual Sanjee.
Home your retirement plans are going well! Good ETFs and when you retire, they’ll likely be well higher than the dip today
Just about the greatest gift to Australian workers ever created! Thanks Paul Keating..
Thanks for 'the recession we had to have' as well???????
See my comment about the *real* reason Super was created, and the *costs* of this "gift".
From no less than Peter Walsh's memoir (he was Finance Minister at the time).
Spoiler: super was created for public servants, by public servants, paid for by an employer that would never go out of business (the government).
A consequence of this "gift" is that costs to business are increased, with a resulting decrease in ability to employ people.
Superannuation is a gift for the employed, especially public servants. But it was, in part, paid for by the unemployed.
Thanks for the video and information.
I'm putting extra $5k every year towards the end of financial year. This brings extra tax returns which then I invest them on the share market.
I'm also saving for house deposit and I will probably take those personal contributions out with first home super saver scheme when it's time to purchase our first home.
Once again, great video Sanjee! Crisp, important, And to the point info.. 👍
This is a really good comprehensive guide, and the chapter markers are really useful 👍
You are a Legend. You are so good Very very easy to follow all you said is very true..last month I moved my super and saved
My previous employer didn’t pay Super, 9.5 years later, changed jobs and within 9 months, have made $20k in the Super Fund.
I switched Super to Australian Super 9 years ago. I hate MLC!! I think of how my Financial Advisor ripped me off with high fees plus trailing commission fees. No wonder it better than 4 x despite being unemployed or working extremely low paying jobs and running a struggling business. I wished I never went into MLC. I wish I knew about Super in my twenties instead of reading a newspaper article when I was 41.
Very informative and clear basics @Sanjee Sen, would be good to hear about concessional and non-concessional contribution caps along with their tax implications.
Thanks for this. Very helpful as I’m new to Australia.
Wow, you are in Australia. Thumbs up from Canada
Very good point on the risks. Nobody can forcast what the government will be upto in the future. Aussie government relies heavily on taxing its people and companies. We need to be prudent with alternative investments i.e index funds or property as an alternative cash out option before retirement age.
Yeeeeeee the Sanjee
You're the best
Thanks for your video. Could you please do video on buying investment property from SMSF? Dos and Don’ts ..
Yup that’s what I do - I invest 60% through super and do rest of the 40% as per my choice
15:15 retiring at 40 or 45 years or age. This means 20 and 15 years to preservation age, respectively, before accessing super, as it currently stands. If anyone has a solid plan to retire at this age, they must use some other investment vehicle other than superannuation to do so. There is no "I'm 25 and I'm going to put everything I can into super and retire at 40". That is not an option.
Hi Sanjee,
I love your videos which are so useful:) As you talked about superannuation now, can you please deal with pension as well like sweet spot? That would be great. And Thanks for your effort
After you buy a house, you have no money to invest in Super. I remember having the kids, being on 1 wage, the wife was at home, and had $10 , for medicine for the kid, or spend it on food? The average punter, does it very tough.
Fantastic..would you consider producing a video about hedging and protecting a portfolio for a market crash? Any ideas of the type of instruments and percentages required to hedge, along with an explanation on how bonds work in periods of volatility. thank you..
Miss your sweet sweet soothing tones Sanjee!
Haha thanks!
First to comment here. This is a great video. Very informative. Learning a lot from you
Awesome! Thank you!
Im 33 and I literally on Thursday changed my super to growth investments.
Should I invest or Top up my super in terms of CGT?
I've seen many comments on RUclips about how great superannuation is, and how great Hawke/Keating were for introducing it.
And there have been many benefits. But there have also been very real costs.
According to Peter Walsh (ALP Finance Minister under Hawke/Keating) in his memoir "Confessions of a Failed Finance Minister):
- Superannuation was designed by senior public servants, primarily for the benefit of those same public servants.
- The core idea behind Super is that the *employer* pays for the employee's retirement.
Why is this important, and why did the public service like this idea so much?
Several reasons, including:
1) public servants didn't have to pay for their own retirement, and
2) their employer (the government) was practically guaranteed to never go bankrupt.
i.e. super was risk-free money for public servants, provided by tax payers.
Public service mandarins sold the idea to the ALP gov -- including Ministers who greatly benefited from Parliamentary super and retirement schemes -- who in turn marketed it to the electorate as a way for average Australians to save for their retirement. It was a big vote winner.
And it was a big vote winner because, like inflation, the real costs were well hidden.
i.e. according to Peter Walsh, the superannuation of the employed was helped paid for by the unemployed.
This is because it was *employers* which were hit with the burden of paying for their employee's retirements. And so employers had to absorb the costs. There are limits to absorption of any cost, and in the real world employers have to increase prices and/or cut costs. Costs including the hiring of people...
Sure. The country’s tax rates for companies and individuals are too high too. That also makes it more expensive to employ people, especially for tech, which are usually on the highest tax rate.
In addition, Super contributions getting taxed benefit the government, not the individual. That 15% contributions tax costs the average teenager $9000 in retirement each year they work.
If this country doesn’t lower income tax rates for individuals and company tax rates, we will have no future industry here.
the super extra contribution calculation does not make sense. could you please do a detailed video on how to use it and compare salary sacrificing vs no-salary sacrificing?
Which investment option is best ?
Sanjee - great video, although you are superior to the barefoot investor. Do you salary sacrifice?
Which ETFs will you keep buying ?
FHSS should be considered as that book you're holding is "2017"
So if you're 44 and you aren't going to FIRE, just maximise salary sacrifice into super?
Hey mate what if your employer cbf to salary sacrifice for you and I opt to do personal contributions myself, do I then claim these personal contributions on tax and receive some money back ?
Hi Slime - yes that's my understanding. This link from the ATO should help. It seems you'll need to sort out some paperwork (Notice of Intent). www.ato.gov.au/individuals/super/in-detail/growing-your-super/claiming-deductions-for-personal-super-contributions/
Is a super generally included in your annual income or is it 10% over and above, that the employer will pay?
Depends on how your work contract is presented to you.
Legislative risk… “how many ways can the government screw me over in the next 20 years” hahaha, so true
Question about “after you buy a house”. Is that after you’ve won the auction, or years later after you pay off the mortgage?
Hi Daniel, it’s saying after you’ve won essentially. Like you’re you no longer need to save for a deposit and are now just paying the mortgage. At least that’s my interpretation of it
If you are salary sacrificing a large amount of your income, this will lower your taxable income which in turn can damage your 'perceived' borrowing power. I'm not sure if this is why the barefoot investor suggests getting the house first but this would be my reasoning.
@@SanjeeSen that makes sense. Thanks!
@@bishikon hmm, great point. Thanks.
Find it frustrating that super companies rake in fees to 'manage' yet turn it back onto us to use DIY options.. should just have a Super section on trading platforms..
You can't have millions in your super account. The maximum you can have in super is $1.6 million.
No you can keep adding until you get to 1.7 M and it can increase through growth from there
dress code?
Haha yeah I only read the first few pages which said I should wear simple clothes. Is this the Glenn W who I think it is?
It's not 33c from every dollar you're earning. It's a progressive system. C'mon, man. :)
i am having trouble seeing your AFSL? WHAT YOU ARE DOING IS A CRIME. I HAVE SENT THIS TO ASIC . GET A LICENSE ! STOP TAKING BUSINESS AWAY FROM US WHO DO THE RIGHT THING! IF I DONT SEE YOUR VIDEOS DELETED IN1 WEEK I WILL FOLLOW UP WITH ASIC. A DISCLAIMER DOES NOT ALLOW YOU TO GIVE ADVICE.