Friday, 19 February 2016

Your Retirement Account (Superannuation or Roth IRA or Roth Sep or 401K)

How to Save Money for Your Retirement (Superannuation)  


  1. Start looking into this now. Money is compounding. 1% difference can be costly in 20-30 years time. And may affect your ability to retire.
  2. Use up all of your super co-contributions benefits.
  3. Find  your lost super by:
    1. Visiting the Australian Tax Office website at www.ato.gov.au.
    2. Checking your mygov account at https://my.gov.au/.
    3. Checking your previous super statements.
  4. Consolidate all of your superannuation. How to consolidate your super?
    1. Log in to your mygov websiteat https://my.gov.au/.
    2. Grab all details of your super accounts (super provider and your account number)
    3. Call the superannuation provider and ask for  the transfer form.
    4. Fill in the form, sign it and mail it back to the super provider.
    5. In 1 week, call them up to check if they have received and processed your request.
    6. In 2 months, check if it’s consolidated by checking your  Mygov account.
  5. Check  the amount of fees that you are currently paying to your super provider - 1.5% pa is pretty reasonable.
  6. Check into the benefits and the criteria for benefits payout that you have in your account.
    1. Do you have death benefit?
    2. Do you have death and total permanent disability benefits?
    3. Do you have income protection insurance from your superannuation?
    4. Be aware of the criteria to claim the benefits.
    5. Be aware of the benefits payouts as well.
  7. Update your beneficiaries, ensure your money won't be bestowed to the government if your beneficiaries are not updated at the time of your death.
  8. Update your will, too, to support your beneficiary appointment at your super.
  9. Ensure you earn reasonable and competitive returns in your super, by looking into the superannuation benchmark return from APRA.
  10. Consider salary sacrificing your superannuation if you are the right stage to do so.
  11. Find out where you invested your money in. Normally you have a say on where you want to invest your money in. So update your investment allocation according to your life’s needs.

Bonus tip: re-invest your Tax Refunds into your retirement account (be it Superannuation, SMSF (self managed super funds), 401K, Roth IRA etc).

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