Hi all,

I was wondering your opinions on over-contributing to superannuation (beyond the usual 9% paid by employers).

I’ve basically got a lot of disposable income at the end of the month so I can afford to throw something extra into my super (say $250-$500 a month).

Some people say put it into a savings account while others say go ahead and put it in the super, save on the tax, invest in your future, etc.

My circumstances:

• Almost 1 year into a 457 Visa, likely to stay for the full term and then get another 457 or even PR.
• Late 20’s, single, renting.
• I have enough at the end of the month to both save and contribute extra to my super

What are your opinions? Wait till i’m older? Stick it in a savings account? Continue?

Do you over contribute?

Do you know much about the sharemarket? - if not read some books, setup a demo account and learn how to trade. A great investment for the future.

In yer 20's and renting?

Then why on earth would you want to lock up money in a fund where you'll never see it again?

Put it somewhere safe, put it somwhere where it'll grow - btu put it somewhere where you can GET IT BACK!!! so if you do decide down the track to sell your soul to the devil and join the ranks of the property 'owning' enslaved classes, you'll have some thing stashed away as a deposit.

($500 a month squirelled away will build up to a decent deposit pretty quickly).

I am, of course, no financial advisor.... but I can see that 'retirement' is a word that will have little or no meaning in a few years time. I dont see 'retirement' as an option for my or future generations and think it'll be a strange quirk of history that those born between 1930 and 1960 were in a 'sweet spot' where they were able to acquire sufficient wealth to provide for AND live long enough to enjoy retirement. Theres huge pressure for retirement ages to increase, theres decreasing performance in unreliable pension funds and life expectancies in the western world are shortening...

SCREW retirement - spend it now while you've got the chance!!!

I would spend that extra $500 on booze, birds and drugs.

and squander the rest

Already do! It's the guilt of it all that is making me think about putting into my super

I already have quite a bit in shares, all UK shares.....

Then buy more and forget about super. Super's just one big ponzi scheme.

I wouldn't be putting it into Super while on a 457. You might stay on and you might get PR... but you might not. From what I can remember of Super and 457's is that you can ask for it back if you leave, minus a big chunk for tax.
Could all have changed since I was on 457 of course.

Yeah, I'm not overly enamoured by my super scheme. I finally had a look at the balance last week, and there's significantly less in there than there would have been if I had taken the money post tax and just stuffed it into a bank account.


S

Be wary if anyone is planning to 'salary sacrifice' sounded like a brilliant idea, however it also means the employer can skip paying the 9% they are supposed to pay for you Quite a loophole that catches many out.

I am over super now, wild men, booze drugs for me too please

Mine's doing great. Went into cash just before the GFC ("no one could have seen it coming" - I did!) then into fixed income.

Should have ridden the latest QE2 bubble but didn't. Currently waiting for next post QE2 huge correction before the share buying opportunity of a lifetime.

do you mind explaining that in case we do it?

Which company are you with?

When inflation gets taken into account, Super is not that good at all. A person may come out with $1 million at the end of 40 years but that $1mil won't have the same buying power in 40 years as it does today. Actually, that $1mil would probaby have the same buying power as $100K today. How long would retirement last with $100k?

In 40 years time I wonder how much $1 million will buy. A mars bar will probably cost $20, lettuce $5, bread $30. (just guessing here)