As a doctor you will typically accumulate a significant amount of super given that your income is quite high in comparison to the general public.
However, many (young) doctors ignore their superannuation and lose precious time and money in the process. Hence, in order to optimise your superannuation, you may need to consider the following strategies and actions.
Consolidate multiple accounts
Many doctors have various super accounts and keep running all of them for years, which may cost you thousands of dollars per annum in unnecessary fees. I have seen clients with 5-6 different accounts, who were easily paying approximately $2,000 p.a. too much in fees.
Please note, you should never just rollover super accounts, as you may lose valuable insurance benefits or incur capital gains tax and exit fees. You should always seek financial advice.
Choose an appropriate investment option
Superannuation is a long-term investment proposition. The majority of people do not pay attention to their investment mix in super, which may cost you dearly.
You should make sure that your super investment has an appropriate exposure to growth assets such as shares and property, as that will be a significant determinant of your investment returns.
In general terms, the younger you are, the higher your exposure to growth assets may be, as long as you are confortable with the ‘ups and downs’ that are associated with this exposure.
Make sure you seek financial advice and also consider the investment fees you are incurring.
Avoid Duplicating Insurance
Just like you might have various super accounts, you may also have a duplication of insurances, inside and/or outside super. You should seek financial advice to streamline your insurance cover.
If you do have insurance cover in super, then you should be mindful that it does not erode your retirement savings. You may consider making extra contributions where possible to fund the premiums.
If you would like to discuss your superannuation strategies and options, then please contact us on 08 6160 5918 or Yves@affluenceprivate.com.au.