There are many factors to consider when deciding if withdrawing super is the right decision for your lifestyle and goals and it can be hard to know where to begin.
That’s where the new online advice platform Fiduciary comes in.
Describing themselves as “affordable, accessible and adaptable”, Fiduciary is a fintech platform offering Australians an easy and streamlined way to access personalised financial advice which can help when it comes to weighing up financial decisions.
The platform is designed for those who are looking to accumulate wealth or make strategic financial decisions but feel like the cost of an expert is beyond reach. Fiduciary allows you to holistically consider your goals, lifestyle and financial situation to make a clear and considered decision.
Canstar caught up with Co-founder of Fiduciary Advice, Andrew Crawford to learn more about how their new platform can assist when making the decision to withdraw on superannuation early.
Q. Beyond meeting the eligibility criteria, who should consider accessing the $10,000 early release of superannuation?
A. Firstly, it’s your money. If you are stressing about money during the crisis, then accessing your super might be the smart thing to do. It may benefit you if the money is used for:
- Keeping up with bills to make sure your credit history stays in good form;
- Building an emergency fund to act as a buffer if you have an unexpected expense;
- Using it to pay off high cost debts, like a credit card.
Q. As an investor, what are the potential benefits of accessing this money?
A. Super provides a tax-effective way of saving, but it comes at a price – it’s difficult to access your money. If you earn less than $90,000 the savings aren’t that substantial. So pulling out up to $20,000 and investing it makes good sense if you may need to use this money in the short-to-medium term.
Q. What are the risks or considerations of accessing this money?
A. If you take money out of super you can always reinvest it later on. One risk is if you decide to put it back in super there will be a 15% contributions tax, i.e. you put back $100 but only $85 goes into your fund. But you will be able to deduct this amount from your income when you lodge your tax return next year for up to $25,000 of contributions, including employer contributions.
Q. If someone is considering accessing the early release of super, what are the financial and lifestyle factors they should consider?
A. Money worries lead to stress for many people. With the level of uncertainty in the economy at the moment, financial stress is higher than ever. So, if you want to reduce this stress, then knowing you have a stash of cash might do the trick. Yes, you will be lowering your retirement savings, but you can always put money back into super when you’re more settled. For example, you could make up the $20,000 you withdraw now by putting $250 each fortnight into super over the next 3 years.
Q. How can Fiduciary Advice assist people who are making this decision?
A. Fiduciary delivers an easy, affordable solution that empowers Aussies to plot the course of peoples financial future one step at a time. By removing barriers of price, jargon, and effort, with our innovative human lead AI advice platform.
Everyday Aussies can now navigate a clear path to their future using our Money GPS.
The platform offers a way to optimise their route using our easy tools and get from A to B, and reach their goals faster.
They follow a personalised Money Map that tells them when and where to turn, taking the stress out of reaching their destination.
Fiduciary’s Retirement Check Up is a great first step to take to see whether or not you should take advantage of the super early release scheme. It’s also a great tool to do some housekeeping on your super to make sure it’s working for you, as hard as you do.
If you’re interested in finding out more, try the Fiduciary Advice Retirement Check Up today.