I wanted to draw your attention to the influence the media has over us. Unlike quality publications such as The Phoenix, some media outlets draw their audience by constantly trying to have us living in fear. And matters regarding wealth are not immune to this problem.
Take for example the headline in the Daily Telegraph recently, ‘Super funds delivering small returns’… Now reading that headline and the first paragraph talking about the lowest returns in 4 years (3% growth on average), you’d possibly be left with a negative sentiment towards super.
However, anyone who read the article through until completion would have read that the median growth fund has delivered average annual returns of 8.8% over the last seven years. Hardly cause for alarm that last financial year only returned 3%! We can go through life listening to all the ‘noise’ projected our way (read: rubbish), or we can ignore the noise, look between the lines and find quality, independent information that allows us to make informed and confident decisions going forward.
Quite simply, superannuation is just a tax structure. It’s the best legal tax break in town. The fact is that anyone who doesn’t like super just doesn’t understand super.
Those who understand it are using it to build retirement nest eggs in a tax effective way that will enable them to pay themselves a decent income in retirement. You have enormous control over your superannuation… Therefore, make sure you understand how your super is invested and what fees you’re paying so that you maximise it for the many days you look forward to enjoying being retired.