The Courier-Mail

GEN X BRUCE BRAM­MALL

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GEN­ER­A­TION X is of­ten ac­cused of be­ing fa­tal­is­tic about su­per­an­nu­a­tion. Many be­lieve it will be hoovered up by gov­ern­ment taxes, crash be­fore they re­ceive it, or taken by frauds.

But they’re not ac­cept­able ex­cuses for tak­ing a bad at­ti­tude to su­per. Most im­por­tantly, Xers need to un­der­stand that su­per is our money, we just can’t touch it yet.

Treat it with re­spect. Do so and it’s likely to grow into a pile worth get­ting ex­cited about.

Firstly, get your su­per in­vested right. Do a risk pro­file to find out what sort of in­vestor you are. Then in­vest more ag­gres­sively than that, by get­ting more in shares and prop­erty. You can’t touch your su­per un­til you’re at least 60 – an ul­tra-long in­vest­ment time frame for Xers.

Sec­ond, pro­tect your fam­ily and your­self. Get your life and to­tal and per­ma­nent dis­abil­ity in­sur­ance in­side your su­per fund, where it’s a tax de­duc­tion to your fund.

Third, once you’ve got your in­sur­ance in or­der, con­sol­i­date your funds. In­sur­ance might mean that you need to keep two su­per funds.

Xers also need to start salary sac­ri­fic­ing. Pre­vi­ous gen­er­a­tions could shovel money into su­per when in their 50s. But we face heavy re­stric­tions on con­tri­bu­tions. Start salary sac­ri­fic­ing from your late 30s.

Xers are now at the age where their su­per is be­gin­ning to look like some­thing, af­ter a cou­ple of decades in the work­force. But we’ll be work­ing a lot longer yet. So con­cen­trate on in­vest­ing and con­tribut­ing right. Bruce Bram­mall is prin­ci­pal ad­viser with Bruce Bram­mall Fi­nan­cial and au­thor of Mort­gages Made Easy

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