Five Tips to secure your financial future

SeniorSage

Administrator
Financial Planning is a profession, and I'm not a financial planner. Not by a long shot. But I think I'm financially pretty savvy, so I'm offering these 5 tips which I believe will help secure your financial future.
  1. Ditch the expensive credit card
    Take a close look at your credit card and ensure it aligns with your current lifestyle. You may longer need those frequent flyer points, so consider swopping your expensive points-earning card with low (or no) annual fees, a favourable interest rate, and extended interest-free periods.

  2. Max out your Super contribution
    If you're still earning an income, consider contributing to your super fund. Currently you can contribute a total of $27,500 (including your employer’s contribution) each year. The benefits of maxing out your contribution to the full $27,500 are two-fold. Firstly, your contribution is taxed at just 15%. Secondly - and more importantly - you can access your super from your early 60s via tax free pension payments.

  3. Use your age to determine your investment allocation
    As you approach retirement, it's important that an appropriate portion of your investments (including superannuation) are relatively low-risk to protect you from market downturns. A rule of thumb I have is to use age as an allocation guideline. If you are 65, then 65% of your investments should be allocated to low-risk investments such as bonds and low-cost, high-yielding market index ETFs.

  4. Have an emergency financial safety net
    Maintain a savings cushion equivalent to about six months of living expenses. Choose a high-yield savings account to ensure your emergency funds are readily accessible.

  5. Choose a "fee for service" financial planner
    When it comes to financial planners, there's a secret worth knowing: those who charge a percentage of your investments may not be your best bet. Opting for an upfront fee often ensures a more transparent and dedicated approach, helping you maintain control over your hard-earned funds.
 
Great tips - especially maxing out Super. The other big advantage of Super is that once you retire and start drawing a pension from your Superfund, no tax is payable on either your pension or any profits your Superannuation investments make!
 
Great tips - especially maxing out Super. The other big advantage of Super is that once you retire and start drawing a pension from your Superfund, no tax is payable on either your pension or any profits your Superannuation investments make!
Depends. I you are on a "Transition to Retirement" pension, your pension is only tax free if you are over 60. If you are under 60 you are taxed at your marginal tax rate.
 
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