“Building a nest egg is vital, but is there a better alternative to superannuation instead of locking your money away until age 60?”

Milli Vanilli had two problems. Their names were Rob Pilatus and Fab Morvan. Both were singing frauds.

Similarly, super has two major downsides for Gen X.

The first is access: We can’t touch it until we’re at least 60 (anyone born after June 30, 1964). The second is legislative risk: Governments tinker with super just because they can (much like Keith Richards and drugs).

Gen Xers will have huge financial needs in their 30s, 40s and 50s. They need to buy homes, fund kids’ educations, have mid-career sabbaticals or mid-life crisis sports cars. Super can’t be used for any of that.

Therefore, investments outside of super are crucial. Yes, you’ll almost certainly pay more tax on both income and capital gains. But at least you’ll have access to your capital.

The sort of investments you should consider depend on your timeframe. If you’re planning for needs beyond seven years, you should allocate a good portion to share and property investments. Gen Xers are also potential candidates for geared investing.

Your late 40s are, typically, when you earn the most money from your career. Prior to that is when you should be investing the hardest, to pay down your home loan and create a non-super nest egg.

That’s not to say you should ignore super. Gen Xers should make sure their super is invested properly from as early an age as possible.

Bruce Brammall is the author of Debt Man Walking (www.debtman.com.au) and a licensed financial adviser.