Wednesday, January 8, 2014

Will You Be One of The Grudge Workforce?

From time to time, Mummy Hearts Money will write partnered posts that are aligned with my (and hopefully your!) interests. Superannuation is heavily on my mind these days, and so I bring to you my thoughts on Super, in partnership with Clime.

Current research shows that a huge portion of the Baby Boomer generation do not expect to be able to retire at 65. Many will eventually become pensioners, with little support from their superannuation and will live a smaller life than prior to retirement.

Now in my early 30's, it would be very easy to dismiss this reality as being a different generations problem. But the fact is, most people are not on track to achieve the retirement they want for themselves. I don't want to live a small life. I don't want my retirement to be a time of sacrifice, struggle, or dependency on my children.

"And in the end it's not the years in your life that count. It's the life in your years." Abraham Lincoln

For me retirement equals freedom. Freedom to do whatever I want, whether that means travelling, relaxing, caring for grandkids, pursuing hobbies, or even working for the joy of doing something I love. It does not means working for the sake of earning an income.

Following our Make Me Rich journey in 2012 (which is by no means finished), Husband and I are committed to making extra contributions to our superannuation. In fact, with my return to full time work this week, we are increasing our contributions starting our very next pay cycle. Moving forward, we are determined that with every pay rise Husband gets, 100% of the increase will go towards superannuation, and we will absorb life's inflation. 

Something else we are exploring, along with a few family members and friends, is a Self Managed Super Fund. Many people I know are starting to enter this exciting yet scary market, using the funds from their superannuation to purchase investment properties. While I think I would keep my regular superannuation fund for the security of having it looked after by someone else along with the corresponding insurances that make me feel just a little more protected, I'm fascinated by the idea of having a property portfolio as part of my retirement plan. Before I really consider this path though, I would want to take a workshop, and understand what professional services are out there to support me and stop me squandering our biggest asset besides our home!

More than anything else, I want to find that balance in life. A balance that means living a full life with the kids today, but not sacrificing a full life with my family tomorrow. For me that means careful planning and commitment to increasing our financial wealth. Pay by pay, year by year, we take smaller steps closer to that magical day of financial freedom.

Don't live a retirement of regrets. Make sure you can live the life you want by taking control of your future today.

Do you make additional contributions to your super? Have you explored Self Managed Super Funds? What do you think?

Clime is an Australian fund manager that offers self-managed super funds (or SMSF), managed funds, and stock valuations. Dedicated to providing value for its clients, Clime can help you reach your financial goals.

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