Nick Stanley is Entity Solutions' trusted associate at FMD Financial, our financial services strategic partner.
How often do you think about your super balance? Twice a year? Less often? Does it matter, I hear you think? I can't access it for 20 years, right? Right, but by then you’ll need enough money to fund your lifestyle and like many clients we see, you’ll be wishing you’d done more to grow your super when you had the chance.
(By the way, FMDs online financial health check can help you understand if you’re on track for a future that is frugal, comfortable or no compromises.)
If you’re still in your 40’s the real question is: How much could your super grow if you made an active choice about your investment strategy today? It could mean more money in retirement – I mean a lot more money, an extra $300,000 for example – to live the lifestyle you’re working so hard to achieve.
It’s got to be worth an hour of your time to work that out, right? The thing is, most people don’t take that hour. Instead, most people sign up to their employer’s default fund and let their super take care of itself; until far too late. By choosing the default fund and not seeking advice, you are effectively saying ‘I’ll let my super run its own course – whatever that may be.’
You may only give your super balance a passing glance now, but before you know it you’ll be relying on it to fund your lifestyle. Consider that for a minute, then look at the above numbers. They show you how you could have an extra $300,000 in super by making a single decision: moving from a Balanced Fund to a High Growth Fund. It’s certainly not for everyone, but everyone should think about it.
And while we’re at it, most people don’t make extra contributions either. Personal contributions in Australia fell by 29% in 2016  , yet making personal contributions is something that frequently separates people who build long-term wealth from those who don’t.
The bottom line? The lifestyle you’ll enjoy when work is behind you is about the action you take now. If you’re ready to take control of your super and build more wealth for the future, book in for a financial health check with a qualified adviser. There’s nothing to lose and everything to gain.
 (Personal contributions in the September quarter 2016 were $3,701 billion down from $5,201 billion the same quarter a year earlier – AFSA stats)