Should Spare Money Go Into Your Managed Super Funds?
Tuesday January 6, 2009
If you have found yourself with a windfall due to an unexpected bonus or minor lottery win, is it a good idea to put it into managed super funds? Essentially, this will depend on your current financial situation and whether you have other assets that will be useful in retirement that you could also contribute money to.
If you have a mortgage or a car loan, you should work out how likely it is that adding the money you have to these will work out better for you financially than putting money into your managed super funds. You may find tools such as superannuation calculators and home loan calculators or car loan calculators to be useful. Work out the amount you could save in interest compared to the amount you are likely to make in investment returns in your current superannuation fund. If the numbers are close, you may wish to look at what other types of super funds might offer.
You shouldn't just look at the sheer financial benefit of unexpected wealth, though. If you have usually been good with your money, know how a super fund works, spend enough of your time choosing a super fund and are already on the track to a comfortable retirement, then you could benefit from spending a little frivolously. Many people forego taking holidays away, to their detriment, due to financial concerns. If you can afford a holiday that you deserve without it ruining your financial goals, it could be worth considering.
Please browse our site if you are interested in reading about managed super funds.