| Why not make it a new year’s resolution to get your financial affairs in order and start working towards achieving your financial goals. The start of a new year is a great time to take stock of where you are at financially and where you would like to be.
Consider the following financial issues and whether or not you would benefit from taking some action.
Consolidate your super funds
Your super is your money so don’t ignore it! If you have had more than one job you may have more than one super fund and that means more than one set of fees and charges. If you roll over your other super accounts into MTAA Super you can benefit by saving on costs and reduce the chances of losing track of your super, BUT, before you close any other existing super accounts make sure you check for any disadvantages in leaving such as exit fees and the possible loss of insurance cover. You should make sure your insurance arrangements with MTAA Super are adequate before you close your other super accounts. This is easily done by applying to MTAA Super for pre-approval of your required level of cover.
Topping up your super with salary sacrifice
Superannuation is widely regarded as the most efficient and tax effective way of investing for your retirement. Contributing a little extra now could significantly boost your end retirement benefit. The key is to take advantage of compound interest (earning interest on your interest) by starting early. You may be able to negotiate with your employer to pay a portion of your salary directly to your super account from your gross income. This is called salary sacrifice and may reduce your tax bill as well as boost your super.
Taking advantage of the Super Co-contribution
If you have a total income of less than $61,920 before tax and also make personal, after tax contributions to your super account, you may be eligible to benefit from the super co-contribution scheme. This is the Federal Government’s initiative to assist eligible low to middle income earners save for their retirement. To see if you qualify and for more information on this scheme you can download our fact sheet on making extra contributions from www.mtaasuper.com.au.
Insurance
Having the right level of insurance cover for your personal circumstances will help provide peace of mind for you and your dependants and it’s a good idea to review your insurance needs from time to time to make sure your cover takes into account any changes in your circumstances.
Consider the following:
» Do you have a regular mortgage payment to meet?
» Are you the owner of a small business?
» Do you have or are you about to have children
» Do you have people who are financially dependant on you?
If you answer yes to any of these questions you may need to consider applying for additional insurance. MTAA Super members can apply for up to five million dollars of death only cover, two million dollars of total and permanent disability cover and income protection cover of up to 85% of salary with a maximum benefit of $20,000 per month.
Financial planning
In order to maximise your financial outcomes, you really need to have a financial plan. This will help you make the most of all your financial decisions, including super investment choices and contributions, tax benefits, retirement arrangements and estate planning. MTAA Super members have access to fee-for-service financial planning through Industry Fund Financial Planning (IFFP). Call our Customer Service Centre on 1300 362 415 to be put in touch with an IFFP planner in your area.
| Do you understand how your super works? |
MTAA Super holds presentations across Australia that are open to anyone, free of charge–you don’t even have to be a member to attend, so bring your partner or a friend. We offer the kind of general information that everyone needs to know.
You should come away from the seminar with a better understanding of salary sacrificing, voluntary contributions and how taxation affects super.
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| MTAA Super workplace presentations |
For employers, it’s easy to arrange a presentation in your own workplace, and each presentation is tailored specifically to your staff. Just tell your Business Development Manager (BDM) the subjects you would like to see covered, and they will put together a special presentation for you.
It might include for example, insurance, making extra contributions and consolidating super—there are a range of topics that can be discussed, so talk to your Business Development Manager about what your employees are interested in. Call us on 1300 362 415 to be put in touch with your local BDM.
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