There are so many options available for us to be able to store our money. Even if it’s just a regular bank account that you’re after, there will be so many terms offered to you that you will have to try and get your head around. From the amount of interest that you will gain from your money being placed in the account, to the charges that you might get on certain transactions, to the perks of opening an account with your chosen provider; it can all be a lot to take in. With that in mind, how do we know that we are putting our money in the right place with our retirement money – and what can be the returns if make a sound choice?
Self Managed Super Funds
This is a good route to take if you are planning for your retirement. It is a superannuation trust structure, with between 2 and 4 members of each self managed super fund having to invest – so great if you are planning on going in with friends. You and the other members of the SMSF are the trustees, making it different from any other type of fund. They generally need a large balance to get started, and you will take on a legal obligation if you are the director of the fund. You can do a SMSF 30 second quiz to see if this is the right option for you. A lot of people don’t know the ins and outs of self managed super funds, so it’s worth taking your research further in order to educate yourself. The money can only be used in retirement, so you need to ensure that you won’t be needing it before then.
If you haven’t been paying into a pension through your place of work, or are self-employed, there is always the option of going for a personal pension. Depending on the type of pension that you have, your employer might make contributions in addition to the ones that you are already putting in there – you will need to clear it with them first. There are a lot of companies that provide these funds, but you will need to go with one that is well-established and has been highly recommended to you. The money that you get upon retirement depends on how well the investments that have been made along the way with your money, in stocks and shares, has gone. If they haven’t been invested well, you won’t receive as much as if they have been traded in a good way. That’s why you need to go with a proven and reputable pension adviser/fund.
Save By Yourself
If you are young enough, you don’t really need to look into anything past saving money by yourself. You can do this the old fashioned way, by putting a set amount of money into your account each month, or by investing in something physical like a property which you can then sell on at the time that you require the money.