With the recent global developments, the share-market has experienced its biggest hit since 1987. As a result, you may have lost significant money in your super-fund.
Just yesterday I spoke with 2 very concerned customers who sadly reported losses in their super-funds of $12K and $60K.
YOU CAN weather the storm of global turbulence by taking control of your superannuation:
Australian super funds have the highest exposure to share market volatility.
The property market on the other hand, remains resilient and continues to move from strength to strength. Just last week we saw auction clearance rates remain strong (Sydney at 69% vs. 49% the same time 1 year ago and Melbourne at 71%, vs. 48% the same time 1 year ago). Source: Domain.com.au
One way to predict the long-term future is to look at the past:
Whilst the share market is prone to volatility, the property market has remained steady (look at the example of the Global Financial Crisis in 2008 where property prices were hardly impacted in Australia).
WHY I BELIEVE IN SMSF’S?
My Clients are routinely SURPRISED when I raise the topic of SMSF’s and show them how easy it is to use superannuation to buy property.
In a nutshell, this is what I tell my Clients – 4 STEPS:
- A SMSF fund is set up in your name (note: the costs for the set-up are taken directly from your superannuation balance, meaning no out of pocket expenses*).
- Next, a loan is taken to purchase a property, let’s say you borrow $500K to buy an investment property.
- Here’s the exciting part – your monthly home loan repayments (to pay off your $500K loan debt) are taken from your employer super contributions & your SMSF rental income.
- The funding of your investment property all works in the BACKGROUND and doesn’t impact the amount of money clearing into your bank account every month (i.e. your net pay) . This is because your SMSF repayments are taken from your super contributions (which you don’t have access to anyway until you retire).
I leave you with the below to ponder on:
2 out of 5 Australians who retire at 65 have no superannuation (Source: ABC News).
And for those who retire (with a balance) – will experience a large shortfall between their super balance vs. the reality of everyday living.
AMP states the average super balance for Australian men and women at retirement is: MEN (60 – 64) – $270,710 and WOMEN (60 – 64) – $157,049
Arrange your FREE no-obligation appointment where I will take you through the steps on the safest way to secure your future.