Have you lost super during COVID? You may very well be concerned that your super fund took a loss during this time. Some people have lost tens of thousands of dollars during the height of the Covid pandemic. You then ask, what can I do to build my retirement fund back up and protect the fund should something like this happen again?
In addition, you may have lost your job and income as a result of the pressures on businesses here in Australia. This of course puts significant pressure on a person to get by with the costs of living and housing.
The Australian Government allowed people to access their Super early to access up to $10,000 in the financial year to get through the difficult times.
Depending on how this was spent, this may invoke concern with some people on will you be able to make it up again and how long will that take?
The good news is, depending on your super fund, this money can be regained. We’ve heard from some clients who have already made a large portion of their money back with their funds with the recent upturn in the financial markets and good fund management by their providers.
It’s certainly a good time to speak with your Financial Planner or find one now to ensure your retirement investment is protected and returning what you need.
Alternative Superannuation Investment
An alternative to the traditional superannuation fund is a self-managed super fund. Transition-to-retirement rules allow you to access your super while you’re still working up to your planned retirement age.
You can then make an alternative investment in property by purchasing a property, residential or commercial as part of your long term investment strategy. This is on the basis that the property, the home will be rented to tenants over time.
This can help avoid the high-risk strategy of investments in shares and cash and losses. There are also tax benefits of following this type of investment to consider as well. Rental funds can be used as a pension payment during the ages of 55-60 years as a supplement income.
This strategy can help create long term assets that you can comfortably leverage in your retirement with certainty and ease.
We can assist you in setting up a self-managed super fund and discuss the options and timing toward investing in property as part of your fund.
What is a self-managed super fund – SMSF
A self-managed super fund is a private alternative super fund that is self-managed by its benefactors or trustees.
It is run in a way you prefer in terms of investments, complying with super and tax laws. It’s a long term investment strategy for your retirement plans.
It’s recommended to obtain professional financial advice in setting up this type of fund and its ongoing management. This type of fund can help diversify your investment portfolio.
Get Help Today
If you lost super during COVID contact us today to arrange a consultation with our expert team to get started on your SMSF journey.
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