You may be wondering why I even think of retirement at such young age, it’s at least 25 years away. Well when I looked at my last statement before I switched and considered that I have spent nearly 20 years in the work force already at that stage, I was ready to cry! My balance was around $60,000. If you consider that the magic figure was $1M to retire on, I realised that I was very far off the mark.
Looking back, I would say that my balance was considered to be better than some other women’s, because I took time to review and adjust my strategies, have always managed to find the right strategies for substantial growth and I was on a fairly good salary. On the other hand, I used to be frustrated because of the salary un-equality, the fact that as a single mum for many years on a tight budget I never had the extra I wanted to put in to boost my little nest egg and more than anything about not being able to really control the outcomes within my super account.
Then the financial crisis happened, and since then the superfunds just haven’t seem to have been growing all that well. I was not seem to be able to get ahead. Another loss and ‘sorry, the market turned’ later, I decided, enough is enough! My Self-Managed Superfund was created and all funds were transferred into my control.
Since I have taken control, my returns doubled, my costs have shrunk and the growth I am achieving to date means that not only will I get to make the magic number of $1M by the time I retire, but well and truly surpass that number! Not to mention that I can create a legacy because my kids can also be part of the fund, as such they will have well established assets they can build on for their retirement.
Whilst I encourage you to take charge of your finances and start planning from retirement as early as possible, I have to warn you that self-managed superfunds are not to be taken lightly. Before setting it up, I had researched what it meant to have one, the costs, the responsibility, the can and can’t dos, legal requirements etc. With all the rules and regulations it is like running a restricted business.
Before you jump into it make sure you understand what you get yourself into. Get a team of experts that can guide you. Weigh up the pros and cons, and ensure that you are up for the challenge to beat the superfunds growth rates with your strategies.