My Journey to Eliminate Debt

I had a very hectic week, Dad was unwell and I have been at the physios most days, so blogging got put on the backburner. I am improving each day and can start working next week thank goodness. I can't wait to get back to it!

I received my annual Superannuation statements during the week. For non-Aussies when we talk about out super we mean our retirement funds. Basically employers pay 9% of a persons wage into super and employees can add to these funds. There are many taxation implications which affect how best to build up funds in super.

Over the last few years the Superannuation laws have been changed to make it a much more attractive investment option. Because we have an election coming up here the government is giving away money left, right & centre. Once again I have scored some free money, $2447 to be precise, added to my super funds in the last financial year! Go Johnny! (actually I really hope you go, it's time for a change!)

I have been looking into changing funds. I am getting a great return, 23% this year. But I am angry that almost 25% of that profit was taken up by fees!

I have been looking into industry funds (not for profit funds) and found a few good options. Once I have read all the prospectuses I will change it over. So here are a few good links for Aussie Superannuation Information:

Better Super Changes. Explains the latest changes introduced 1/07/07. Worth reading.

Super Decisions Step by Step. Excellent site by the Australian Securites & Investments Commision. This site is worth checking out for heaps of good financial information on lots of topics.

Industry Super Funds. I found this site really helpful and easy to use. If your considering a change of super it's a really good resource.

First I found funds I was eligible to join (based on industry) and then I compared the benefits of them.At this stage I am pretty sure I will swap to Care Super. I like the fees, the products and there is an added bonus of a member health fund or a discount with NIB health fund. I have sent off for more information about both so I can compare benefits and savings.

This super fund charges a weekly fee of $1.50 plus a % fee depending on which investments are chosen. There are no entry/exit fees or switch fees. So far this works out cheaper than my ANZ fund.

Compare Super Funds. An online comparison calculator.

*Obviously the tax benefits of super choices can be very different based on each persons taxation situation so do get your own financial advice so you are not disadvantaged at retirement time.

SuperSeeker. You can track down lost super online.

Super Co Contribution. If you earn less than $58,980 you may be entitled to free money. Check here for the recent changes. I use this every year to boost my super.

A few years ago I added over $10,000 in one year by salary sacrificing my income into super to bring it to the lowest threshold, paying the $1500 co-contribution and then collecting the governments bonus. It was my first year out of uni so we just kept living on a really low income after I started work. It got an empty super account off to a flying start. It's free money!

Super Co Contribution Calculator

Self Managed Superannuation Fund. I considered setting up my own fund when I started my business but decided to wait a bit. This site has the basic information.