FinNest: Helping our clients

Superannuation

Superannuation provides a world of opportunity to the well advised. But those who put it in the 'too hard' basket are often left lamenting the opportunities they've forgone. At FinNest Financial, we specialise in supporting the right outcomes to help you avail yourself of the best in strategies pertaining to superannuation for your individual circumstances.

What you need to know

Superannuation is often the cornerstone that generates the income that people need in retirement. It is the one thing that you can invest in that is specifically designed for that purpose. However, without the right advice, it’s often misunderstood, underutilised, put in the too hard basket or just plain ignored.

At FinNest Financial, we specialise in retirement planning advice to help you make the most of the wonderful opportunities that superannuation offers. Superannuation is complex and constantly changing, so our ongoing support will help ensure that your strategies meet the ongoing challenges and opportunities that superannuation provides.

Maximising your super

The government provides generous tax incentives to encourage Australians to invest in super with contributions being taxed at 15% rather than the personal income tax rate of up to 47%, including the medicare levy. You might consider setting up a salary sacrifice arrangement with your employer, allowing you not only to make super contributions from your pre-tax salary but also potentially reducing your income tax bill.

Also for many, there is capability to make large voluntary contributions (known as ‘non-concessional’ contributions) to superannuation to prepare yourself better for generating greater retirement income. For example, if you receive an inheritance or windfall, or even sell an asset such as an investment property leading up to retirement, get the right expert advice from us at FinNest Financial to make the most of this opportunity.

It is never too late to take control of your super, so talk to us about how our advice and support can make a real and tangible difference to your financial outcomes in retirement.

How much super is enough?

To calculate how much super you’ll need in retirement, you will need to know:

  • Your estimated life expectancy
  • How much annual income you want to receive in retirement
  • How much super you’ll need to produce that level of income.

A professional financial adviser can help you answer these questions, explain the various options available to you, and provide advice on the best strategy for your situation.

At FinNest Financial, we can provide advice on the most effective way to build your super balance and achieve your retirement goals within your time frame.

The sooner the better

Super is one of the most tax-effective investments available. Because it is by nature a long-term investment, the sooner you start to contribute to it the more time your money will have to grow. Over time you’ll earn interest on your interest, as well as on your regular contributions. The same rule that applies to investments also applies to super – regular investing is the key to steady growth.

Sound advice is the key to success

As you will see from the case studies below, a carefully thought-out strategy could make all the difference to achieving your goals.

FinNest Financial offers knowledge, expertise and experience. We’ll take the time to understand your individual circumstances and retirement goals, and then recommend appropriate superannuation strategies to help you achieve them. Click here to see examples of how FinNest Financial has achieved positive results for our clients.

To find out how to maximise your potential returns from super, call 07 3831 7629 or email us.

 

Case Studies

How the right advice can help

You can use a number of strategies to achieve your Superannuation goals. The following case studies provide examples of this.

John earns $75,000 pa and his tax rate is 34.5% including medicare levy. He wants to put away an extra $5,000 a year towards his retirement, but he’s not sure whether the tax advantages to be gained from investing in super are worth tying his money up. His other option is to invest outside super.

John has heard about salary sacrifice, a strategy where you ask your employer to take extra money out of your pre-tax salary and contribute it to super. As well as boosting your super, this strategy also reduces your taxable income, so you pay less income tax.

John decides to compare how much he could save by salary sacrificing $5,000 into super, with how much he could save by investing the same amount outside super. For the purposes of this example, we’ve assumed that both investments would provide a return of 7.7% pa.

After 20 years John’s savings could be:
Inside super $97,186
Outside super $64,039

That’s an extra $33,777 if John salary sacrifices into super.

Here’s how it works:

Notes
This table is for illustrative purposes only and does not represent actual returns.  A change in one or more variables and assumptions will produce different results.  This is general information only and does not take into account your individual objectives, financial situation or needs.  This table illustrates the position after 20 years of taking $5,000 pa of before-tax salary and either salary sacrificing it into super or taking it as cash salary and investing outside of super. It assumes investment earnings of 7.7% pa, after fees and before tax. Super investment earnings and contributions are taxed at 15%. Non-super investment earnings are taxed at a marginal tax rate of 34.5%. All figures are in today’s dollars, adjusted for inflation of 3% pa.
Disclaimer
This case study and any graphs or examples included in this case study are for illustrative purposes only and are based on specific assumptions and calculations. Individual circumstances may vary and this will alter the outcome. The case study does not represent any forecast or guarantee on return.
The information provided on this website is intended to provide general information only and the information has been prepared without taking into account any particular person’s objectives, financial situation or needs. Before acting on such information, you should consider the appropriateness of the information having regard to your personal objectives, financial situation or needs. In particular, you should obtain professional advice before acting on the information contained on this website and review the relevant Product Disclosure Statement (PDS).

Relevant PDSs can be obtained by contacting us. No representation or warranty is made as to the accuracy, completeness or reliability of any estimates, opinions, conclusions or other information contained on this website. This website may contain certain forward-looking statements. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control. You should not place reliance on forward-looking statements. To the maximum extent permitted by law, we and Matrix Planning Solutions Limited disclaims all liability and responsibility for any direct or indirect loss or damage which may be suffered as a result of relying on anything on this website including any forward-looking statements. Past performance is not an indication of future performance.
Finnest Financial Pty Ltd ACN 163 390 547 is a Corporate Authorised Representative No. 440812 of Matrix Planning Solutions Limited ABN 45 087 470 200. AFS & ACL 238256.

Helen and Christian each want to invest $100,000 into superannuation. Helen chooses a conservative option with a projected earning rate of 6% pa. Christian is a bit more relaxed and opts for a growth-oriented option, which contains specific growth assets such as shares and property and has a projected return of 8% pa. While his projected return is higher than that of the conservative portfolio Helen has chosen, which invests mostly in cash and fixed interest, Christian’s choice involves more risk.

Because super is a long-term investment, Christian thinks he has plenty of time to ride out any ups and downs in the markets. He believes that growth assets are likely to be more effective in building a decent retirement nest egg and while there are some risks involved, he’s willing to accept short-term volatility in return for higher returns over the long term.

Helen and Christian ask their financial adviser to compare the two options. The adviser’s comparison shows that after 20 years Christian’s $100,000 investment would grow to $466,096 while Helen’s balance would be $320,714 . A difference of just 2% pa in performance resulted in Christian’s growth portfolio accumulating $145,382 more than Helen’s conservative portfolio.

 

Notes
Source: Colonial First State. This chart is for illustrative purposes only and does not represent actual or expected returns for any particular funds. A change in one or more of the variables or assumptions listed will produce different results. Generally, the higher the potential return, the greater the risk of investment loss. This chart compares assumed returns of 6% pa and 8% pa (after fees and taxes) over 20 years on a starting balance of $100,000. Results are not adjusted for inflation. Please note that over long periods of time, inflation can substantially reduce the purchasing power of your money.
Disclaimer
This case study and any graphs or examples included in this case study are for illustrative purposes only and are based on specific assumptions and calculations. Individual circumstances may vary and this will alter the outcome. The case study does not represent any forecast or guarantee on return.
The information provided on this website is intended to provide general information only and the information has been prepared without taking into account any particular person’s objectives, financial situation or needs. Before acting on such information, you should consider the appropriateness of the information having regard to your personal objectives, financial situation or needs. In particular, you should obtain professional advice before acting on the information contained on this website and review the relevant Product Disclosure Statement (PDS).

Relevant PDSs can be obtained by contacting us. No representation or warranty is made as to the accuracy, completeness or reliability of any estimates, opinions, conclusions or other information contained on this website. This website may contain certain forward-looking statements. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control. You should not place reliance on forward-looking statements. To the maximum extent permitted by law, we and Matrix Planning Solutions Limited disclaims all liability and responsibility for any direct or indirect loss or damage which may be suffered as a result of relying on anything on this website including any forward looking statements. Past performance is not an indication of future performance.
Finnest Financial Pty Ltd ACN 163 390 547 is a Corporate Authorised Representative (No. XXXXXX) of Matrix Planning Solutions Limited ABN 45 087 470 200. AFS & ACL 238256.
FinNest Financial

Contact information

Office 07 3831 7629
Email enquiries@finnest.com.au
Level 3, 67 Astor Terrace
Spring Hill QLD 4000
FinNest Financial Pty Ltd
ACN 163 390 547
is a Corporate Authorised
Representative (No. 440812) of
Matrix Planning Solutions Limited
ABN 45 087 470 200,
AFSL & ACL 238256

Financial Planning Association of Australia
Advisor Ratings Platinum Advisor

© 2020 FinNest Financial Pty Ltd. All rights reserved

WEB DESIGN BY KODE

IMPORTANT INFORMATION.

This web site has been prepared by FinNest Financial Pty Ltd. FinNest Financial Pty Ltd ACN 163 390 547 is a Corporate Authorised Representative (No. 440812) of Matrix Planning Solutions Limited ABN 45 087 470 200, AFSL & ACL 238256. The information provided on this webpage is intended to provide general information only and the information has been prepared without taking into account any particular person’s objectives, financial situation or needs. Before acting on such information, you should consider the appropriateness of the information having regard to your personal objectives, financial situation or needs.

TERMS & CONDITIONS | FINANCIAL SERVICES GUIDE | GENERAL ADVICE DISCLOSURE | SECURITY AND PRIVACY STATEMENT