Superannuation top up or stock market?

[bfhoon]

Hi Everyone

Thought I would open up an interesting thread on whether people would recommend dumping 10K into my super now or 10K into a stock with a dividend and what the possible advantages/disadvantages would be.

Currently im 33 years old with a dismal super balance of $50K. Would Like to crack the 1 million mark for super at retirement which I cant see me achieving more like $450K being optimistic. By the time I retire I will own an IP worth $450K in todays dollars and my PPOR which is also worth 450K in todays dollars.

What would everyone do im thinking if I pick a good stock that goes up over 40 years + the added advantage of dividends for 40 + years im assuming the stock will eventually pay for itself and I can reap the rewards in retirement.

Im just at that age now where my financial future is so damn important before I hit age 30 I didn't care whatsoever although I always thought about super and made extra contributions etc. Apart from that though I had no interest in my future im glad im knuckling down now though....

Hoping for an interesting discussion here

 

[themeinvestor]

So many choices!! Good choices though.

Putting it away in super gives you tax advantages, but it is locked away until you retire.

I quite like the calculators on ASIC's moneysmart website too. The calculator I've linked to below compares super to mortgage repayments, but you can play around with the figures a bit.


https://www.moneysmart.gov.au/super...per-contributions/contributing-extra-to-super

https://www.moneysmart.gov.au/tools-and-resources/calculators-and-apps/super-vs-mortgage-calculator

 

[bfhoon]

So many choices!! Good choices though.

Putting it away in super gives you tax advantages, but it is locked away until you retire.

I quite like the calculators on ASIC's moneysmart website too. The calculator I've linked to below compares super to mortgage repayments, but you can play around with the figures a bit.


https://www.moneysmart.gov.au/super...per-contributions/contributing-extra-to-super

https://www.moneysmart.gov.au/tools-and-resources/calculators-and-apps/super-vs-mortgage-calculator

Interesting calculator i probably does rely on your super fund making a better than average return and who knows in 15 ears time what super funds will be returning.

 

[So_Cynical]

Perhaps salary sacrifice 10k into super and spend the 10k in hand, saving maybe 1k in tax...depending on your circumstances.

 

[christianrenel]

Hi Bfhoon,

Benefit of investing the money outside of superannuation is that you may be able to borrow against this portfolio at later stage and leverage your money.

If your personal goal is to have $1 million inside superannuation, this would be a good way to start achieving this goal.

Kind Regards

christiarenel