| The general consensus is that you will need 2/3rds of | | | | making the money you will need to live on when you |
| what you live on now when you retire. It makes one | | | | retire. |
| think a little bit about what you could buy with your | | | | If you start early enough, the mere fact of |
| money 20 years ago, doesn't it? | | | | compounding growth will help you over a number of |
| Were they the days when a pork fillet was $9.99 kg | | | | years. The longer you leave it before you start |
| instead of $32.00 kg, or the days when apples were | | | | accumulating assets the less you will have as you get |
| $1.99 kg instead of $5.99 and when petrol was 38c a | | | | older. |
| litre not $1.28? | | | | When developing your financial freedom you need to |
| So if you retire at 65 and live until 85 you can see | | | | consider both your superannuation and your |
| just how little your money will buy by the time you | | | | investments outside your superannuation. Super |
| reach 85. | | | | funds have a certain amount of limitations but they |
| This is the shock value in what you have to realise | | | | do have the tax incentives. Consideration needs to |
| about growing your superannuation and becoming | | | | be given to both methods of growing your wealth. |
| financially independent. Commercially run super funds | | | | Because you cannot get money out of |
| have been earning about 9% for their investors, but | | | | superannuation until you are of retirement age (unless |
| during the last year that has not been the case. So | | | | you can prove severe hardship) you need to be |
| what returns are in the future? | | | | careful just how much money you put into super in |
| Have you considered managing your own super | | | | the first place. |
| fund? | | | | A safer strategy is to have equity building in your |
| There are costs involved in setting up your own fund | | | | superannuation to help reduce taxes, but also have |
| and there are annual costs but if you make the | | | | equity building outside the super fund in case you |
| effort as so many people have and start early you | | | | need or want cash at any stage for any other |
| will more than likely be making far in excess of what | | | | expenditures in life. |
| the commercial super funds are making. With the | | | | With private super funds it is possible to have monies |
| fact that you can now buy property with your super | | | | going in from each member of the family and this |
| fund and also borrow on property investments in | | | | can give quite a bit of financial backing to building an |
| your super fund there is a much greater chance of | | | | investment portfolio in the super fund. |