(03) 9020 2905Gen Xers have major distractions in their lives – burgeoning careers, cash-guzzling and time-devouring rugrats plus monster mortgages.
It’s possible to do everything yourself … if your time is unlimited. But most Gen Xers understand time doesn’t grow on trees and they need to outsource some stuff. If personal finance isn’t your strength, get professionals involved.
There are three keys to Gen Xers and their super. One, get the appropriate insurances inside super (generally life and total and permanent disability) so that you and your family are protected if the unthinkables happen.
Second, make sure your super is invested properly. About 80 per cent of Australians are invested in their super fund’s default “balanced” option. However, most Xers would benefit from having more of their super in shares and property.
Third – and this applies from about age 40 – beef up your contributions by salary sacrifice (for employees) or concessional contributions (for self-employed).
Previous generations had generous limits on contributing money into superannuation. Gen Xers don’t. Because of the current government’s contribution-limit reductions, we will struggle to get enough into super to make it a worthwhile sum.
If you think you have enough time to study and implement all of those yourself, all power to you.
If you’d rather spend time with the kids, have friends around for a barbeque, go out for dinner with your partner, watch the cricket with your mates, bake a cake, play golf, or clean out your shed/stick pins in your eyes, outsource your super to a financial adviser. Yes, it’s worthwhile.
Bruce Brammall is the author of Debt Man Walking and Mortgages Made Easy (www.brucebrammallfinancialcom.au) and principal adviser with Bruce Brammall Financial.