Why is superannuation important? What makes the guaranteed contribution scheme justifiable? And how much should you personally contribute to your super fund?

With Australia’s pension fund (superannuation) ranked 4^th in the world in 2018 by the Melbourne Mercer Global Pension Index, and super assets totaling $2.7 trillion at the end of the June 2018 quarter, it’s worth taking a look at what super means for Australian citizens and its economy.

Australia’s modern superannuation system began in 1991, with a compulsory scheme that requires employers to pay a set portion of their employee’s salaries into a super fund, known as guarantee contributions. Currently, the super guarantee rate is 9.5% of your income, and is planned to be incrementally increased after 2021 to 12% by 2025. On top of these compulsory contributions, you can also choose to make personal contributions out of your own pocket to further grow your super.

When can I access my Super?

To access your super’s funds, you need to reach your ‘preservation age’, which is currently between 55 and 60 depending on when you were born. As long as you’re permanently retired you can access your super once you reach this.

Benefits of Super?

The obvious reason for super’s existence is to help people save money for retirement. Therefore, the main benefit of guaranteed contributions is that it forces you to set aside money for eventual retirement, so you have an adequate income stream post retirement to be comfortable and maintain a certain standard of living. This is especially helpful for anyone that may struggle to save money for long term goals, since it can be hard to think about putting aside money that may not help you for another 30 or so years. See our blog ‘Why you don’t care about Future you’

The drawback of mandatory super payments is of course, that in the short-term you feel a loss of disposable income, and with the savings being out of reach until your preservation age, you may have to save an additional pool of money to afford short to medium term purchases such as a new car or holiday (see our blog ‘5 Ways to Save More with Raiz’). Given this, it’s still hard to argue against investing in Super. A lack of retirement funds would mean more reliance on the government’s Age Pension scheme, which in turn would place more pressure on the government (and therefore tax payer dollars).

How does Super affect the Australian Economy?

Hypothetically, if people began to not contribute much/any money to their super throughout their lives, an increased reliance on the Age Pension would strain government resources, causing either allowance per person to decrease, or forcing the government to increase funding. This funding would have to be sourced still within government funding in other areas, and/or increased tax rates.

While Australia ranks number 54^th in the world by population, ranking 4^th by pension fund assets shows the great lengths in us as a country in ensuring enough wealth for Australians in the future.

Should you personally contribute to your super fund?

Another way of growing your super balance is through voluntary contributions. The main advantage of this is that any contributions may be tax deductible*, reducing your personal income tax. For more detail, see our blog ‘New rules for Super Contribution’. These savings could also potentially accrue more returns than a standard bank savings account in the long term. When judged over the last 10 years, the top 30 super funds averaged a return of 6.4%. The top 30 performing funds over the last 12 months averaged returns of 9.2%.

How can you easily manage your Super?

Raiz Super offers its users an easy to use interface that allows you to easily view your balance and all contributions (guarantee & personal), all on your mobile phone. Being entirely accessible digitally through the Raiz app and website means users can regularly check their Super balance, observe how the market has affected their overall amount, and easily contribute additional funds. For more information on Raiz fees, click here.

So, given the importance of Super, do you feel connected enough to your future?

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:

 

Important Information

The information on this website is general advice only. This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the product.

A Product Disclosure Statement for Raiz Invest and/or Raiz Invest Super are available on the Raiz Invest website and App. A person must read and consider the Product Disclosure Statement in deciding whether, or not, to acquire and continue to hold interests in the product. The risks of investing in this product are fully set out in the Product Disclosure Statement and include the risks that would ordinarily apply to investing.

The information may be based on assumptions or market conditions which change without notice. This could impact the accuracy of the information.

Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz Invest or Raiz Invest Super.

Past return performance of the Raiz products should not be relied on for making a decision to invest in a Raiz product and is not a good predictor of future performance.

 * For the new rules, there are certain eligibility criteria, which are not trivial, so you do need to check with a licensed tax adviser (or other) before deciding to make voluntary contributions and claim a deduction.

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Do you like to save? Here are 5 ways to save more by making the most out of Raiz!

Automate your Savings Goal

By automating and naming your savings goal, this will help reaching your goal easier. With our Savings Goal feature, you can set a recurring investment in-line with your pay day, as Raiz allows you to customise investing daily, weekly, fortnightly or monthly. You can customise the goal name to keep you focused on what you are trying to achieve. You are also less likely to miss or notice the money when investing in small amounts regularly and stops you from thinking “I will save on my next pay” (on every pay check!). For more information on Raiz fees, click here.

Check out ‘Uncategorised’ tab in My Finance

MyFinance is a free to use feature within the Raiz app. It provides you personalised insights and notifications on how you are spending. Spending is the other side of the equation and keeping a handle on this can help you meet your savings goals.

MyFinance also projects your future free cash based on your past spending and income, which may also help you determine if you are spending above your means or if you can save more. To make the most out of it on ways to save more, link up all your spending accounts and check out the ‘Uncategorised’ tab within ‘Categorise Transactions’ to categorise any that MyFinance was unable to. MyFinance will then learn to give you better insights, powered by machine learning technology.

Do your normal shopping through Raiz Rewards

Better than loyalty points! Racking up points which you can redeem later (for half a toaster…) have been the traditional model for rewards programs. With Raiz Rewards, by just clicking through our links, you can earn a cash reward on eligible purchases, invested back into your Raiz account. Just like the Raiz philosophy, all these small rewards can add up, especially with over 100 brands partners to shop from. Already do your clothing or grocery shopping online? Take advantage of saving more simply by doing the same shopping through the Raiz platform and receiving a cash reward every time. Read more about ways to save with Raiz Rewards on our blog – ‘Raiz Rewards: Cash-forward is the new cashback‘

Get to know your finances instantly with Ashlee, the Raiz Chatbot

The problem with managing your finances in the past was having to manually do it yourself, usually through a tedious spreadsheet. We’ve changed this by integrating our chatbot, Ashlee, with Facebook Messenger. Much like a personal fitness coach, Ashlee makes getting to know your finance easy and simple. She can respond in real-time on questions around your spending habits e.g. “How much did I spend on shopping last week?” or “how about last month?” as well as answer questions on future savings e.g. “Can I afford to buy a new phone?” or “how long will it take me to save $2,000?”. For more questions and ways to save more, check out our blog – ‘Ask Ashlee – Raiz Intelligent Chatbot Questions‘

To use, just go into your Facebook Messenger app and search for ‘Raiz Chatbot‘. Please note, you will need a Facebook Messenger account to access the Chatbot. The more up to date your MyFinance is with categorised spends and linked accounts, the more accurate the responses from Ashlee will be.

Personal Contributions to Raiz Invest Super

The more you save for your future now, the higher the potential income can be when the future arrives. New laws passed in July 2017 means all employees are now eligible to claim personal tax deductions on contributions up to a cap. Prior to this, it was limited and required arranging a salary sacrifice with your employer. This means now your savings in Raiz Invest Super may be tax deductible* through personal contributions!

You can also open a Raiz Invest Super account and see all your other superannuation funds or consolidate any other existing Super funds you may have into Raiz Invest Super. By doing this, it may save you more from removing extra fees and insurance premiums. With Raiz, see all your investments in one place on your mobile phone.

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:

 

Important Information

The information on this website is general advice only. This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the product.

A Product Disclosure Statement for Raiz Invest and/or Raiz Invest Super are available on the Raiz Invest website and App. A person must read and consider the Product Disclosure Statement in deciding whether, or not, to acquire and continue to hold interests in the product. The risks of investing in this product are fully set out in the Product Disclosure Statement and include the risks that would ordinarily apply to investing.

The information may be based on assumptions or market conditions which change without notice. This could impact the accuracy of the information.

Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz Invest or Raiz Invest Super.

Past return performance of the Raiz products should not be relied on for making a decision to invest in a Raiz product and is not a good predictor of future performance.

* For the new rules, there are certain eligibility criteria, which are not trivial, so you do need to check with a licensed tax adviser (or other) before deciding to make voluntary contributions and claim a deduction.

Read Post

We are excited to announce a new feature – the Raiz Facebook Chatbot – Ashlee – to help you feel even more control of your finances!

Ashlee, the intelligent Chatbot, can answer both generic and specific questions relating to you such as “What is my balance?”, “How much did I spend on shopping last week? last month?” or “Can I afford to go out tonight?”

Ashlee responds in real-time to questions specific to you, through Facebook messenger to your mobile phone. The more up to date your MyFinance is with categorised spends and linked accounts, the more accurate the responses from Ashlee will be.

To use, just go into your Facebook Messenger app and search for ‘Raiz Chatbot’. Please note, you will need a Facebook Messenger account to access the Chatbot.

Below is a list of questions you can ask Ashlee, the Raiz Chatbot! Ashlee can answer both generic and specific questions relating to your Raiz account. Feel free to try ask her any other questions so we can continue improving her responses. For more information on Raiz fees, click here.

Below is a Video Demo on how to get started with Ashlee – the Raiz Chatbot:

Article Mentions

• Adviser Voice: Raiz Invest brings financial insights to life with Facebook chatbot 
• Yahoo 7 Finance: The new Facebook chatbot that’ll revamp your finances
• Australian Fintech: Raiz Invest brings financial insights to life with Facebook chatbot
• IFA: Raiz addresses Millennial advice gap with chatbot
• Investor Daily: Raiz targets millennials with Facebook chatbot
• Computerworld: Raiz launches chatbot in response to banking Royal Commission

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:

 

Important Information

The information on this website is general advice only. This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the product.

A Product Disclosure Statement for Raiz Invest and/or Raiz Invest Super are available on the Raiz Invest website and App. A person must read and consider the Product Disclosure Statement in deciding whether, or not, to acquire and continue to hold interests in the product. The risks of investing in this product are fully set out in the Product Disclosure Statement and include the risks that would ordinarily apply to investing.

The information may be based on assumptions or market conditions which change without notice. This could impact the accuracy of the information.

Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz Invest or Raiz Invest Super.

Past return performance of the Raiz products should not be relied on for making a decision to invest in a Raiz product and is not a good predictor of future performance.

Read Post

Sydney, Australia – September 18, 2018: Raiz Invest Limited, the mobile-first micro-investing platform, has today launched a chatbot to improve the user experience. Customers can ask Ashlee specific questions about their account or the financial markets and get general customer support. Much like a personal fitness coach, the aim is to help Australians have a healthier relationship with their finances.

With an active (paying) customer base of more than 172,000, skewing towards the under-35 demographic, Ashlee provides intuitive and real-time responses. Integrated on Facebook Messenger, it takes advantage of the personal and instant nature of the app in aligning with millennials.

Personalised on-demand investment updates

Ashlee further personalises the Raiz experience. She will answer personal spending questions by category including shopping, entertainment and dining. She’ll even advise whether you can afford to go out for dinner by predicting your future cash balance based on historic spending patterns.

Developed by Raiz and powered by the latest artificial intelligence (AI) technology, Ashlee offers tips based on your historic spending and income. This provides a personalised experience via your mobile phone whenever you need guidance. This helps to plan more effectively for the future. Check out the type of questions you can ask here.

“The Royal Commission into financial services will cause a significant reduction in the number of financial advisors and consultation costs will increase,” Raiz Invest Managing Director, George Lucas, says. “The average Australian will find it more difficult and expensive to get financial advice.

“Ashlee is designed to fill part of this gap and will improve over time. Her investment and spending tips are instantly available, providing customers with bite-sized financial assistance when they need it most via their mobile phone.”

The future of micro-investing integration

Ashlee continuously learns and gathers new insights using artificial intelligence. She’ll eventually be connected with Google Assistant and Siri.

“Ashlee will help young Australians engage with their financial future by providing instant financial assistance when they need. This will give millennials the freedom to make better financial decisions for the future,” Lucas says.

“Improving financial confidence is a goal we’re passionate about at Raiz. We’re excited to see how we can further adopt AI and help our customers make better decisions. We strive to continually think up new and innovative ways to improve engagement with their savings, so they can meet their goals.”

You can find Ashlee by searching ‘Raiz Chatbot’ on the Facebook Messenger App.

Below is a Video Demo on how to get started with Ashlee – the Raiz Chatbot:

Article Mentions

• Adviser Voice: Raiz Invest brings financial insights to life with Facebook chatbot 
• Yahoo 7 Finance: The new Facebook chatbot that’ll revamp your finances
• Australian Fintech: Raiz Invest brings financial insights to life with Facebook chatbot
• IFA: Raiz addresses Millennial advice gap with chatbot
• Investor Daily: Raiz targets millennials with Facebook chatbot
• Computerworld: Raiz launches chatbot in response to banking Royal Commission

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:

 

Important Information

The information on this website is general advice only. This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the product.

A Product Disclosure Statement for Raiz Invest and/or Raiz Invest Super are available on the Raiz Invest website and App. A person must read and consider the Product Disclosure Statement in deciding whether, or not, to acquire and continue to hold interests in the product. The risks of investing in this product are fully set out in the Product Disclosure Statement and include the risks that would ordinarily apply to investing.

The information may be based on assumptions or market conditions which change without notice. This could impact the accuracy of the information.

Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz Invest or Raiz Invest Super.

Past return performance of the Raiz products should not be relied on for making a decision to invest in a Raiz product and is not a good predictor of future performance.

Read Post

By George Lucas, Managing Director & CEO of Raiz Invest

The revelations unfolding at the Royal Commission into banking and financial services would make a mafia don blush. The pillars of banking and wealth management have been exposed for overcharging or charging for no service, poor and often conflicted advice, misleading regulators, and contravening trust laws, and that’s just to name but a few miscreant deeds. Reputations of regulators, corporates and individuals, are being trashed.

It’s good that we are having a root-and-branch inquiry into our financial services system. Those who said an inquiry wasn’t necessary, from politicians to analysts to senior journalists, haven’t got egg on their faces. They have omelettes.

But once it’s over and the media circus has moved on, where’s it going to leave most consumers. In my opinion, certainly not better off, and possibly worse off. Let me explain.

It seems to me that there are three certainties coming out of this inquiry; tighter regulations, higher professional standards demanded of those offering advice, and stricter enforcement by the regulatory bodies. All good outcomes in themselves, but they do have one obvious consequence – higher fees – especially as they will have higher levels of education. In addition, there are suggestions that many advisers will chose to exit the industry (some suggest up to 50%).

It means that advice could very much become the preserve of the well-heeled; the very people it could be argued least need advice. But for many Australians, getting good advice will be beyond their financial means, and this in a country where financial literacy is nothing short of a national disgrace.  As the Royal Commission was told, a 2006 survey showed 46 per cent of people aged between 15 and 74 struggle to understand simple financial services documents, and it’s my guess this situation hasn’t improved.

So, the very consumers who have been shown to be the most vulnerable could now find themselves unable to afford any advice, although, it should be added, no advice is better than the bad advice many have been getting.

So, what to do? It seems to me there are three viable options. First, there needs to be a focus on financial literacy – and it needs to start at an early age. Via social media it is possible to reach young people on matters financial, but they still need to have the basic financial literacy skills to distil this information. Governments, state and federal, need to make this priority, and not keep paying lip service to it.  This is one of the benefits of the Raiz App which increases financial literacy from the hands-on experience of participating in financial markets.

Second, governments (Liberal and Labor) and regulators who have spent the past 30 years creating and cultivating an oligopoly in Australia in financial services need to seriously reconsider.  Barriers need to be imposed on large financial institutions to reduce their ability to user their existing market power to compete.  This may include allowing international institutions into the market and creating an “un-level” playing field so new FinTech players such as Raiz, which can fill some of the gaps left as advisors leave the market.  I am talking my own book here.

Thirdly, in certain areas of the financial system, people must participate; banking, insurance and superannuation are three of the most obvious. These institutions have guaranteed markets, especially superannuation, where every working Australian is a conscript, not a volunteer.

Any institution that compulsorily gets nearly 10% of your weekly wage needs to operate to an ethical standard that’s the polar opposite of a mafia don. There can be no excuses. People who hand over part of their salaries to an industry/retail/public sector/corporate super fund, supposedly to give them some financial security in retirement, should not have to wonder whether that money is being invested in a fiducial manner that considers their best interests. It should be holy writ, and institutions who fail to do should feel the full force of the law. If the Royal Commission at least achieves that end, then it will have been worthwhile.

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:

 

Important Information

The information on this website is general advice only. This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the product.

A Product Disclosure Statement for Raiz Invest and/or Raiz Invest Super are available on the Raiz Invest website and App. A person must read and consider the Product Disclosure Statement in deciding whether, or not, to acquire and continue to hold interests in the product. The risks of investing in this product are fully set out in the Product Disclosure Statement and include the risks that would ordinarily apply to investing.

The information may be based on assumptions or market conditions which change without notice. This could impact the accuracy of the information.

Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz Invest or Raiz Invest Super.

Past return performance of the Raiz products should not be relied on for making a decision to invest in a Raiz product and is not a good predictor of future performance.

Read Post

How Australia’s #1 Investment App use insights and research into the millennial audience to inform strategy and grow tools for finance education

Raiz Invest Limited, the mobile-first micro investing platform, improving the financial confidence for over 164,000 Australians, is strategically using research and insights to continuously garner understanding and awareness of their customer needs, with the help of Dr. Jake An, Raiz Invest Research Phd and in conjunction with major Sydney Universities.

Dr. Jake An applies his PhD theories to Raiz customers to improve the user experience and is now the brains behind the continuing research program of Raiz. His role is to merge his two passions, academia and research applying them to real world of financial literacy and behaviour. Working with Raiz since 2016, Jake identifies business problems and works directly with academics around the world – including Australia, Israel and Oxford University in the UK – to help solve them.

In a true success story, Jake came to Australia from Korea at age 11 and taught himself English, via economic and business text books. Jake has since hard-wired his brain for analysis since arriving in Australia. This passion for business and research led him to Raiz where he now works to dissect consumer behaviours to inform product development helping Australians become more financially savvy and set themselves up for the future. He believes that the critical element in furthering the growth of the FinTech industry in Australia and beyond, is tapping into the power of online word-of-mouth content.

Through his PHD, whilst at UNSW, Jake conducted research on the effectiveness of a company crafting the word-of-mouth message for a customer, rather than relying on customers to craft the message on their own. The research provides substantive marketing insights in terms of how FinTech companies can better design sharable word-of-mouth content, to generate greater customer referrals on digital platforms and create social benefits.

Managing director, George Lucas, said: “Jake needed a real-world test of his theories to complete his research and reached out to Raiz for assistance. He was instantly a hit and began working with Raiz to shift the company from a sale-oriented word-of-mouth (WOM) approach to a story-oriented WOM approach. Today, it’s an approach that’s borne great success for Raiz. From someone whose business career started when he requested his aunty to send him shoes from Korea which he could sell at Westfield Blacktown for a profit, to an expert in exploring the concept of word of mouth marketing to shape the Raiz brand, his story is one to call out in the finance industry.

The research is now a prime example of how data can empower customers by creating social benefits. The key benefit being that Raiz has now empowered customers to increase their personal influence and help others improve their financial confidence too. He is a motivation for millennials looking to educate themselves in finance.”

Jake is also informing Raiz’s business strategy and growing the brand through his application of concepts around pragmatic learning theories and how they can be applied to finance education through insights and research – a key element of the Raiz Invest platform today.

The work from Jake is a clear example of how education into the benefits of sound finance behaviours and the finance sector has contributed to building one of Australia’s most successful start-ups, who are using insights to understand the millennial audience to inform their strategy and continue to grow the brand as a tool for finance education.

The research conducted is currently under review with the Journal of Marketing, the leading international peer-reviewed academic journal in marketing and is also a finalist for Best Communications Campaign in the Australian FinTech Awards.

See our other blogs – ‘New research on money issues by Raiz‘

Media Coverage:

Adviser Voice – ‘Meet the brains behind Raiz Invest research and insights’

Australian FinTech – ‘Meet the brains behind Raiz Invest research and insights’

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:

 

Important Information

The information on this website is general advice only. This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the product.

A Product Disclosure Statement for Raiz Invest and/or Raiz Invest Super are available on the Raiz Invest website and App. A person must read and consider the Product Disclosure Statement in deciding whether, or not, to acquire and continue to hold interests in the product. The risks of investing in this product are fully set out in the Product Disclosure Statement and include the risks that would ordinarily apply to investing.

The information may be based on assumptions or market conditions which change without notice. This could impact the accuracy of the information.

Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz Invest or Raiz Invest Super.

Past return performance of the Raiz products should not be relied on for making a decision to invest in a Raiz product and is not a good predictor of future performance.

Read Post

Raiz Super is now available!

You are now able to invest in the same six Raiz portfolios for your superannuation as you would for your investment account. Just like a bank account or your Raiz account, superannuation is your money. That’s why we want you to feel confident and connected to your future, enabling you to view all your investments in one place, on your mobile phone.

Fees?

Our ambition is to give you an easy and affordable way to invest and build wealth for your future. Raiz Invest Super fees place it in the bottom 25% or lowest quartile for accumulation superannuation funds on the market (based on a SuperRatings review of over 440 superannuation funds). Please refer to the product disclosure statement for more detail.

Do I have to roll over?

No, this is up to you. You have the choice to just open a Raiz Invest Super Account and make employer and personal contributions, without rolling over other Super fund balances.

If you would like to combine your Superannuation (and it’s not compulsory to do so), Raiz Super can run a SuperMatch search via the App in just a couple of minutes, giving you the choice to select which Super Funds you would like to consolidate by rolling into Raiz Invest Super.

Do I have to select the same portfolio as my non-Super Raiz Invest?

No, you are able to select a different portfolio to your non-Super Raiz account. Raiz constructs six diversified portfolios (including a Socially Responsible option) with the help from the Nobel Prize winning economist and father of Modern Portfolio Theory, Dr. Harry Markowitz.

How do I join?

To join, download the latest version of the app. Go from the menu > Raiz Super to get started! Below is a 30 second walk through on how to sign-up and roll over your existing funds (if you choose to).

Thank you again for your ongoing support. We look forward to your feedback on Raiz Super through support@raizinvest.com.au or 1300 754 748, as we strive to continue improving the financial confidence of our Raiz community.

Articles in Media:

Investor Daily – ‘Raiz Invest enters superannuation market’

Super Review – ‘Raiz Invest adds super feature to wealth app’

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:

 

Important Information

The information on this website is general advice only. This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the product.

A Product Disclosure Statement for Raiz Invest and/or Raiz Invest Super are available on the Raiz Invest website and App. A person must read and consider the Product Disclosure Statement in deciding whether, or not, to acquire and continue to hold interests in the product. The risks of investing in this product are fully set out in the Product Disclosure Statement and include the risks that would ordinarily apply to investing.

The information may be based on assumptions or market conditions which change without notice. This could impact the accuracy of the information.

Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz Invest or Raiz Invest Super.

Past return performance of the Raiz products should not be relied on for making a decision to invest in a Raiz product and is not a good predictor of future performance.

Read Post

Whilst you don’t care
about retirement now (we get it, why would you if you’re young?), we can almost
guarantee you that one day you probably will. This may happen when you start a
family or just when you get older (which also we can pretty much guarantee). So,
don’t forget that your Superannuation is still
your money, just like it is your money in a bank account or your Raiz
account. You have spent time learning
to be more financially confident, so it is just as important to understand
Superannuation and how to get the most out of it.

How is your Superannuation funded?

Your employer will pay contributions
to your super fund on your behalf. It’s required that your employer pays at
least 9.5% of your salary at all times. However, it may be a great idea to
explore boosting your super balance even further and letting the power of
compound interest do its magic if you can afford it. Like the Raiz Philosophy
of investing small amounts regularly, what might be insignificant amounts now,
will add-up over your working life and could mean a big difference to your
lifestyle upon retirement.

Last year, the government
announced you can also voluntary contribute on top of the employee guarantee
payment further, cash taking the total up to $25,000 per annum and that this contribution
will be before tax (check with your advisor or superannuation fund on how this
is done). This extra ability to do voluntary contribution rolls forward for 3
years. This means if you didn’t voluntarily contribute this year, your cap
rises to $50,0000 the following financial year ($25,000 from first year, and
$25,000 from the second year).

What’s the first step to getting your Super under control? –
Consolidate.

Every year, billions of
dollars are lost in fees paid to manage and administer your super, mainly due
to a lack of consolidating your super. This is because many superannuation
funds charge a flat fee for administration. If you’ve had a lot of jobs
(casual, part time or full time), you may have all your money sitting in
separate funds or lost supers and having to pay flat fees on each fund. Consolidating all
these into one super fund could help you save on fees and help you feel more
financially confident by managing this money all in one place. Tools such as
Raiz Super, once fully launched, can help you search for all your Supers
through your TFN and can consolidate them on your behalf. For more information on Raiz fees, click here.

Did you know?

• Australia was one of the few countries to avoid a major recession during the GFC, with some economists believing that Australia’s superannuation system is what helped prevent it.
• Australian superannuation is the fourth largest asset pool in the world   and totaled approximately $2.6 trillion in 2017.
• All Superannuation products in Australia, including Raiz Super, are governed by five separate regulatory bodies including Superannuation Complaints Tribunal, Australian Taxation Office, Australian Securities and Investments Commission, Australian Prudential Regulation Authority and the Department of Human Services

Why is Super important?

Today, the average person changes jobs ten to fifteen times during his
or her career. Future generations are predicted to have this increased to 17
employer changes across five different careers. This means it will be more
important than ever to know where your superannuation contributions are going,
and how you can make the most out of it for your retirement by reducing the
fees you pay now. We know you probably
don’t care about retirement now, but you will one day. For this reason, like
your bank or Raiz account, your superannuation fund should never be out of
sight, or out of mind. It is your money and your funds for living a comfortable
future 🙂

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:

 

Important Information

The information on this website is general advice only. This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the product.

A Product Disclosure Statement for Raiz Invest and/or Raiz Invest Super are available on the Raiz Invest website and App. A person must read and consider the Product Disclosure Statement in deciding whether, or not, to acquire and continue to hold interests in the product. The risks of investing in this product are fully set out in the Product Disclosure Statement and include the risks that would ordinarily apply to investing.

The information may be based on assumptions or market conditions which change without notice. This could impact the accuracy of the information.

Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz Invest or Raiz Invest Super.

Past return performance of the Raiz products should not be relied on for making a decision to invest in a Raiz product and is not a good predictor of future performance.

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