Smart Money Strategy

CHAPTER 11The Superannuation Strategies

Superannuation (or super) is an investment structure, but it's a special kind of investment structure and that's why it deserves a special focus. Superannuation is money put aside while you're working for your retirement that you can't access until you reach a legislated age. Your employer takes a portion of your total remuneration and places it into a superannuation account. Regardless of how much you earn, your employer is required by law to pay at least 10.5 per cent of the total wages you earn to your super. In today's superannuation system, you can also make additional contributions to your superannuation account.

Outside of the family home, superannuation is generally the largest asset people will accumulate over their working lives. It's therefore a very important part of your strategy stack.

Just like any other kind of investment, superannuation members typically have one or more of three expectations:

1. That they'll receive interest from the money invested (income).
2. That they'll have their initial money returned or see it go up or down (capital).
3. At the point of sale of the investment, they'll sell for more than they paid for it (growth).

This chapter provides you with some additional Investment Strategies that may be used in conjunction with the underlying investment of superannuation. Specifically, I explore these strategies:

• The Super Vehicle Strategy
• The Consolidation Strategy
• The Contribution Strategies
• The Contribution ...