Superannuation
“I can't change the direction of the wind .
– Jimmy Dean
Achieve your retirement goals
Superannuation is the most valuable asset for most Australians outside of their home. Unfortunately, very few people will give much thought to their super until it’s time to hang up their boots.
At Metis, we believe that your financial future is too important to be left to any ‘default option’ prescribed by your superannuation firm. Instead, it is our mission to design a resilient superannuation portfolio tailored to achieving your retirement goals, whatever they may be.
The accumulation phase
The accumulation (or growth) phase refers to the ‘building’ stage of your superannuation balance. A combination of employer and personal contributions, supplemented by the growth of your chosen investments, will increase the balance of your superannuation.
By contrast, fees, taxes and premiums will reduce any growing balance and should be monitored carefully. During this critical accumulation phase, superannuation is subject to a concessional tax rate of 15%, which for most Australians is significantly less than their marginal tax rate. This makes investing in your superannuation a tax-effective way to build wealth beyond those compulsory contributions made by your employer or that are required under Australian law.
The Pension phase
Pension phase commences when you have met a condition of release and would like to start withdrawing from your superannuation to fund your lifestyle.
Importantly, any accounts in pension phase are not able to receive contributions, and you must instead meet minimum withdrawal requirements which are calculated as a percentage of the account balance based on your age. During pension phase the tax rate on income, investment, and withdrawals is 0%; however, your beneficiaries may pay tax on your superannuation assets should they be bequeathed.
Felix is in his early forties and following his parents’ recent retirement, he has started worrying about his own financial future. When Felix began his working life, he was automatically placed into his employer’s default superannuation fund and beyond glancing through the annual statement, he knows very little about his super or financial ‘health’.
Concerned by his situation, Felix speaks with a financial adviser that cuts through the jargon in his super fund’s annual statements and identifies all hidden fees applied to his account. The financial adviser then recommends an alternative fund that has all of the features Felix needs at a lower cost.
Following this, the financial adviser asks Felix a series of diagnostic questions and they agree that the ideal investment portfolio will have 50% less risky assets (like cash and term deposits) and 50% more risky assets (like shares and property). Although Felix was currently invested in the ‘balanced’ option with his existing super fund, he is shocked to learn that this ‘balanced’ option has a 75% exposure to more risky investments. To better align with Felix’s appetite for risk, his financial adviser designs and implements a portfolio of investments made up of reputable fund managers, with a great track record that reflect Felix’s lower risk tolerance.
Felix is also instructed to make extra contributions to his superannuation, for which he is able to claim a deduction on any personal income tax paid.
Finally, his financial adviser models the balance of Felix’s superannuation with this new recommended fund and additional contributions. The modelling indicates that Felix will have the option to retire at 60 with enough savings to sustain his desired retirement lifestyle and provide a substantial legacy for his children.
Although the above case study is only an example, we have helped many clients in the same situation to maximise their superannuation and achieve their dream retirement.
Testimonials
What our clients say?
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Sam helped us find a super fund and strategy that aligned with our long-term goals. Sam also helped us review our mortgage and explore the right income protection coverage. It’s such a relief knowing that my finances are in good hands and that we have a concrete strategy for our future.
“If you’re looking for a financial advisor who’s knowledgeable, friendly, and genuinely cares about your financial future, I highly recommend Sam and Metis Private Wealth.”
Alex
Stephen
Heath
Lachlan
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He is one of the friendliest people I’ve ever met and makes himself available at any time of any day to assist. His expertise, approachability, candour and dedication to his clients is second to none. I couldn’t recommend him enough!”
Shannon
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