Super Rules, OK?

Do you rule your superannuation or does it rule you?

It's easy to fall for some myths about your super unless you do some clear thinking about who is in charge. Virtually all Australian employees now have a superannuation account, many have several, even more than they know about. We all hope to use this money to fund our retirement, but unless you look after your super then you are in danger of losing some of your money along the way.

Myth number 1. Someone else can look after my super. Only partly right. It is possible go through your working life letting your super run on autopilot, but you may be in for an unpleasant surprise if you don't keep an eye on your super. Make sure your employer is paying the correct amount, and that if your employer goes broke your super is still available.

If you change jobs you need to decide if you wish to 'roll over' the money into another fund. This is especially important if you change jobs frequently. You can find that you have relatively small amounts scattered over several funds, and in each you will be paying a management fee before you earn any distribution or interest. In the long term inflation will eat away at the value of your principle, even though the dollar amount stays the same. Many super companies provide a free service to consolidate small accounts for you. Use them.

Myth number 2. It's not my money until I retire. Dead wrong. It's your money, just like the rest of the money in your pay packet. Super funds are providing a service of managing your money until you can legally access it when you retire. You have control of it. After July 2005 you will have even more say about your money. If you are not happy with the service you should tell the service provider. If they can't fix your problem, then you can sack them and put your money elsewhere.

Myth number 3. I don't need to worry about it until I am at least fifty-something. Not really. Australians are enjoying longer lives and better health. You will need more money if you want to have more options in retirement. You will probably need to top up your super to achieve financial independence in your golden years. The sooner you start the better.

The Australian Government is generously giving away our money to help lower and middle income earners top up their super. It's called the superannuation co-contribution scheme. If you, or your spouse, are eligible you should make sure you get your share.

Fact number 1.Our superannuation is our money. To look after your super you need to learn about your rights and options. It's a long term task. You need to get information and advice. Don't rush, but start soon.

About The Author

Darby Higgs is a Melbourne-based web writer. He is the manager and editor of its-our-money.com a website aiming to empower investors in retirement funds to take a more active role in the governance of their money.

darby.higgs@gmail.com

---

The Benefits of Laddering Your CD Investments

If you've decided to stock some money away in a... Read More

25 Ways to Find Companies to Buy

When you start your program to purchase your "ideal" company,... Read More

An Old Dividend Stock Investment Idea, for a New Generation

Death and taxes! The certainties of life! And then, of... Read More

Chile Leads the Latin Pack

Everyone's talking about China. Don't miss the opportunities in the... Read More

When Its Too Late to Save for Retirement

You are 55 years old (or somewhere around there) and... Read More

Discover the Foundation of Retiring Wealthy - The IRA!

Let me tell you about some legal ways to avoid... Read More

How to Terror-Proof Your Money

"To drift is to be in hell, to be in... Read More

Short Selling for Investors

Shorts. Let's see. If there are shorts there must be... Read More

Who Wants To Be A Millionaire?

I am sure you have probably read about the power... Read More

When It Comes To Investing, Asking The Right Questions Can Help You Make The Right Decisions

Are you ready to open your pathway to financial independence?Well... Read More

Retirement ? Its Sooner Than You Think!! (Honestly)

Many people hear "retirement" and think- what? 401K? Roth vs.... Read More

College Savings Plans ? Are They The Best Choice For My Child?

College Savings Plans ? are they the best choice for... Read More

Preparing to Invest: How to get started

Investments can be a source of great potential earnings. The... Read More

Choosing A Financial Advisor

With so many financial advisors trying to woo you with... Read More

Investing in World Markets

There are many different ways to invest in world markets:... Read More

Angels Investors and Their Networks

What is an Angel Investor? An Angel is usually a... Read More

Learn How to Lose and Risk Management

One of the leading traders on Chicago Mercantile Exchange, because... Read More

How Eating Bitumen Made Me a Better Stock Trader

Stock market trading is a fascinating activity.There are so many... Read More

Commodities - The Next Big Wave of Fortune Building

Have you often wished you could have got in on... Read More

Beta Factors: How They Can Be Used In The Current Situation

Ever since the turn of the century, world stock markets... Read More

Finding a Broker

"Hey Joe! I need help finding a broker. I notice... Read More

Missleading Fund Names Wreak Havoc On Investor Returns!

Mutual fund managers use fake fund names to part you... Read More

Get Wealthy With the Rule of 72

When it comes time to retire how many people would... Read More

Is Offshore Banking for You?

You've probably heard about people who keep their money offshore.... Read More

Franchise Investing, Franchise Opportunities and Franchising Renewals

Have you considered buying a franchise instead of trying to... Read More

Top Ten Investment Mistakes

1. Lacking an investment plan a/k/a/ "Don't take a trip... Read More

Stock Market Horizons: Gold $3,000, Oil $70

In the last two decades, even though gold prices have... Read More

Preholiday Trading

The Light Crude Continuous Contract closed at $66.13 a barrel... Read More

Seven Investment Terms Everyone Should Know

For those who have never given their financial future a... Read More

Invest or be Pink Slipped

Firing an employee seems to be easier and easier for... Read More

Should You Put Your Annuity in an IRA?

Let me start by answering that question...if an annuity fits... Read More

Making Your Investment Dollars Work for You

Investments are scary for some people, especially those who have... Read More

Why have Investment Plans for the Stock Market

If you do not have an investment plan in the... Read More