Superannuation Options in 2020
From the Managing Director
What a year 2020 has been. From Droughts, Extreme Fire and Floods to World Wide Pandemic issues and the year is only half over!
Whatever is next I am confident we can all stand up to it and win with that spirit Australians seem to have in spades. That never give in, never give up attitude.
With June 30th soon upon us comes a feeling that most of us have not experienced before – apprehension.
With the World markets having been in free fall (until only recently when we have seen a positive rebound, with some large deviations from the positives to the negatives in the ASX and ASX 200) people are asking themselves “should we top up our Super”?
Should we trust the markets to return to a positive position AND MAINTAIN IT?
Are there other options?
Personally, I believe now is an opportune time to be investing while we have a reasonable entry cost into the market and before the recovery starts in earnest.
There will always be the doomsday sayers who dwell on bad news like a drug, purporting only the bad side of investing in this climate.
If we all thought like that it would not be the Australia I know. We would not be in such a positive position as a financial entity of strength overall compared to many other countries.
Yet in saying this I do most certainly realise that everyone’s position is different and you should obtain financial advice before proceeding with anything mentioned in this letter.
So what can you do?
The Government allows you a caped concessional (tax deductible) amount of contributions in one year of up to $25,000 including any mandated contributions made (most notably Employer Super contributions) and any Life Insurance payments that are defined as Super contributions that you make.
Most of us do not have much left to contribute after mortgages, bills and general living expenses (unless of course, you have made arrangements to Salary Sacrifice part of your Income which is a very smart move). However, any contribution you can find will help immensely going forward when compound interest is taken into account.
It’s the time in the market that’s important, not trying to time the market and this compounding effect is the most understated positive you have acting on your account constantly.
Don’t forget your Income Protection premiums they are also deductible in 99% of cases and can assist dramatically in reducing your taxable Income.
Above all, do not leave this until the last minute to get involved, most companies have cut off times for contributions that are well before the 30th June.
If you do not have a financial adviser and would like further assistance with any questions, queries or even setting up an account for Super, Life Cover or Income Protection to assist prior to June 30th please contact us. We offer a free initial consult and are equipped to assist in any action you may require.
It’s a simple phone call or email.
To all our current clients, thank you for your unwavering support during these difficult times and we look forward to assisting now and for many years to come.
Stay well and safe and have a prosperous 2020, despite all the hurdles, we are still in a good position.
Yours Sincerely,
Ken Ryan
Managing Director
Coast and Country Insurance Consultants P/L
