Busting the super myths
Myth 1 – Super is a type of investment.
Wrong. Super is a tax-effective way to save for your retirement. Within super you can invest in different types of investments—or asset classes—with different levels of risk and return.
Myth 2 – I have no control over my super.
Wrong. Super is your money and, while it’s invested over a long term, there’s a lot you can do to take control over your retirement savings. You don’t need to accept the default investment option.
You can change your super investment to reflect where you’re at in life. Most super funds offer a choice of investments depending on how much risk you’re prepared to take on.
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If retirement is still a fair way off, you have longer to recover from any market downturns. So you might be willing to take on more risk.
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If you’re nearing retirement, you have less time to recover from any market downturns. So you might take a more conservative approach and take on less risk.
You can put your super into an investment platform, offering a wide range of investment options, from direct shares all the way through to managed funds.
You can even set up a self managed super fund to take full control of your super. But don’t forget, you’ll take all the responsibility for complying with rules, administering your fund and managing your investments. Most SMSF owners get professional help with the paperwork.
Myth 3 – I won’t have to share my super in a divorce.
Wrong. Super is on the table in any divorce settlement, along with the family home and other investments. It’s treated just like any other asset. And that counts for de facto couples as well.
You can split your super payments as part of a settlement. But you’ll still need to keep that money in a super fund until retirement.
Myth 4 – I can’t access my super until I retire.
Not strictly true. Many people don’t realise that if you were born before 1 July 1960, you can start a transition to retirement strategy when you turn 55. It’s a really tax-effective way to start drawing an income from your super, while still working and contributing towards your retirement nest egg.
You can call AMP on 131 267 or your financial planner to find out the real story behind super.
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Now that you’ve busted some super myths, here are some simple digital solutions to help you sort out your super:
You can be one of the first people to use the new super and banking app from AMP – the convenient, easy way to manage your AMP super and bank accounts on your iPhone – coming early in 2014. Simply activate your online account at My Portfolio and anyone registered for My Portfolio will hear about it first!
Registering for My Portfolio is quick and easy. Go to amp.com.au and click the link to log into My Portfolio.
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What you need to know
Any advice in this document is general in nature and is provided by AMP Life Limited ABN 84 079 300 379 (AMP Life). The advice does not take into account your personal objectives, financial situation or needs. Therefore, before acting on this advice, you should consider the appropriateness of this advice having regard to those matters and consider the Product Disclosure Statement before making a decision about the product. AMP Life is part of the AMP group and can be contacted on 131 267. If you decide to purchase or vary a financial product, AMP Life and/or other companies within the AMP group will receive fees and other benefits, which will be a dollar amount or a percentage of either the premium you pay or the value of your investments. You can ask us for more details.
