Why I am not contributing more to my super this Finacial Year

While i’ll admit that I did question this decision constantly over the last few months.

Why do I not want to contribute more to super? I still have about $14,000 of concessional contributions available to me..

Tax deductions left on the table… Agony #FWP.

Crazy I know.

However, each time I have come to the same conclusion.

I have at least 31 years before I can access Super…! That is a very long time, and likely to be longer by the time I get there.

Even if I contribute absolutely nothing to my account for the next 31 years I will have approximately $560,000 (based on a 7.5% rate of return), this equates to approximately $22,400 a year. (about what my annual expenses are currently)

Given this little bit of information technically I never need to contribute to super ever again. And if I add in the age pension, this looks even better 🙂

But, the reality is. I still have some ways to go in my work life so that I can hit my FI number, that means more work and effectively more super.

So for now I will forego the added tax benefit and this new home super saver scheme (as it is way to complicated at the moment). Potentially I will look at the NHSSS next year, depending on where things are at.

Every dollar I have invested outside of super is putting me one dollar closer to my FIRE number!

What are your thoughts? Are you contributing more to super this year?

Cheers,

YML

 

 

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