Financial Advisor

Superannuation Fund

While most experts tell us that saving our money into a superannuation fund is making the best use of it possible, it may not always be the best choice, especially for those who won’t retire for another fifty years or so. Remember that once the money is put into this nest egg, you cannot access it until you retire. And since no one knows what their future holds, you may need that money well before then.

That’s not to say it should be placed in some ordinary savings account with little interest. Nor should it be used to give you the sort of lifestyle many people long for but can rarely afford. If you do have extra money to save, why not put it into a savings account with really good interest, such as an online account of term deposit and keep adding to it until you have enough to invest in shares? This way you will still have access to it in times of emergency.

Of course, you should not neglect adding to your superannuation fund from time to time as well. Your additions over the years can add up to a great nest egg that will ensure you are comfortable during your retirement. This is particularly so if you salary sacrifice each year so that the government has to match it with a like amount.

Mel C writes about the Australian Superannuation Funds including SMSF.

Superannuation Fund / Author: Mel C