"What's Your Biggest Asset? Article by Tina Zawila

As part of our “Tax Worx” package here at Sothertons Gladstone, in addition to having your annual tax return prepared, you are given the opportunity to meet with a financial planner to discuss your financial position, review your insurance needs and develop a strategy for your financial future.

Often we hear from the under-30 year olds, “I really don’t need this meeting, I don’t own anything and I don’t need insurance”.

However, those that make the time for the meeting are often surprised to discover what they do own, how insurance can be tailored to suit them and how a few small changes can make a big difference to their financial future.

In particular, when we ask this age group “what assets do you own” question, we get the usual responses such as a car, some cash in the bank (to save for a house deposit) and “that’s about it”.  Sometimes they will already have a home, which has a large mortgage attached to it. 

Rarely does anyone mention their superannuation fund balance in this conversation, and yet for some, this represents one of their biggest assets!  Yes, even bigger than the interest they own in their own home (after you consider the amount owing to the bank).

So few people know just how much they actually have in super, and even where all of their superannuation is – often holding multiple accounts.   Fewer still, know how their superannuation is currently being invested – for example whether it is in a defensive, growth or balanced portfolio.   Yet, this is currently their biggest asset!

Superannuation is a complex topic; however, your financial advisor can assist you in making the right decisions to suit you.  The decisions you make today in your 20’s and 30’s can have a significant impact on your retirement plans in the future. 

So don’t delay, seek advice on how to invest and protect your biggest asset.  Call the professional team at Sothertons on 4972 1300.