Investing in Super through your 40’s. Super Simplified


As the kids grow older and you ditch weekly rent for regular mortgage payments, bills
continue to mount through your 40s and your approximate weekly expenditure rises to nearly
$2,000. Chances are you are also being paid more in
your career, which will help. During this decade, it’s important to keep balancing your
budget between stability at home and continued investment into your future. Retirement and
maybe even early retirement might be something that you start thinking of more and more.
The amount you can contribute to super is limited each year, but it is important that
you figure out how much you will need for your retirement and draw up a plan on how
you will get there. Here are a couple of strategies you might want to consider. There is Salary Sacrificing, which is an arrangement you can make with your employer where you can choose to
make contributions to your super from your pre-tax salary. Also, if your partner is not
working or on a low income, then a spousal contribution will also help build the family
retirement bucket. These strategies may provide you with some tax benefits.
It is also important to know how your super is invested and be sure that it is invested
appropriately given your age. As you are in the prime of your life, you can still afford
to maintain a strong allocation to Growth. If you’re with Virgin Super LifeStage
Tracker Balanced option, we will invest 70% of your balance in growth assets such as Australian
Shares and International Shares with the remaining 30% invested in defensive assets such as Australian
Fixed Interest, Australian Listed Property and cash.

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