Why do super funds make this crucial information so hard to find?

At this stage of your life, it is not wise to deposit money to growth investments such as stocks. I have no doubt that you will soon find a job, you can re -evaluate it at this point and put a longer -term plan into implementing it with much more confidence.

I have always read your answers, especially your answers to retirees, and I was very impressed by the necessity of a 4 percent retirement and your words about 17 percent tax. I’m surprised both of them.

We do not receive a pension from the state and live with investment income. My wife is 74 years old and I am almost 80 years old. IT has a social assistance fund defined just above the retirement threshold, and if I die first, my wife will get 50 percent. The Australian super has about $ 145,000 and has not been touched since he retired at the age of 60. Considering that we do not need money, can it be a problem to leave it there? We also have an adult son who receives a disabled salary. We want to serve him as much as we can. Do we need to take precautions for more of my wife’s retirement salary to pass on it?

If a person has retirement money in retirement mode, he / she must withdraw a certain percentage of his balance as a pension every year. In the money accumulation mode, there is no such necessity.

However, the disadvantage of having money in savings mode is that you pay a constant tax of 15 percent over its earnings. Leaving the money in the accumulation mode will not cause such problems, except that your wife achieves a lower net return.

The best way to protect your son is to make him the right -handed candidate of your wife’s retirement salary, because in this case, the pension will automatically go to him. This is better than relying on the will, because the fund will be able to pay directly to itself without any dispute.

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Recently, you have written a few articles about compound growth and the power of early start. What would you recommend to the family and friends as a savings or investment strategy for a newborn baby?

Composition requires the automatically re -investment of the investment in order to increase the quantity faster as time goes on. In addition, when you exceed $ 416 per year, you need to consider the criminal child tax that is valid for money earnings left to non -disregard people.

The best solution is the insurance bond, which is an investment that is paid tax (that is, the tax to be paid is deducted from the earnings of the fund every year). There is nothing that no one will declare on the tax return during the investment.

In addition, when the child is 18 years old or decided by grandmother and grandfather or parents at a suitable time, the money can be exempted from tax. These are a very effective and simple investment.

Christmas Whittaker is the author of this: Retirement is easier And other books about personal finance. Questions: noel@noelwhittaker.com.au