Will you have enough cash for your bucket list?
Swimming with sharks.
Nude skydiving. (I just made that last one up.)
What’s on your bucket list?
A recent survey by REST Industry Super Fund of their members found that 1/3rd believed they wouldn’t have the cash to fulfil their bucket list when they stop working (and finally have the time to tackle the list).
Is it because of our massive mortgages? Are the things we want to do too extravagant?
Maybe. But the fact remains we could all benefit by tipping a bit more into super, and letting the magic of compound interest do its thing over time.
The folks at REST are hoping to encourage more members to contribute to their super now, so at retirement they’ll have amassed enough to live comfortably. (And hopefully afford to go sailing along the Amalfi Coast.) And for good reason, as my recent post about the outstanding super returns of the last few years highlighted – over time, it’s a great (and tax-effective) investment.
But let’s face it – super’s boring. (Half of you would have stopped reading if it wasn’t for ‘nude skydiving’.) But one of the great things about super – with just a few little tweaks, you can make a huge difference to your retirement savings.
Check this out:
If a 25 year old salary sacrificed just $100 a month into super, they would end up with an extra $270,000 at retirement!
(Here’s another cool table showing The power of a regular savings plan – note this doesn’t factor in the tax-effective benefits of salary sacrificing into super.)
But it’s important to remember: life is much more than financial decisions. You need to ask – why wait until you retire? Why not get started on your bucket list now, while you’re (hopefully) fit and healthy? My mate Travis Bell – aka The Bucket List guy – helps people tick off their bucket list in the here and now. (He also gets to join them, which is a brilliant business model if you ask me.)
So while it’s important to ensure you have funds set aside to enable you to enjoy the lifestyle you want once you stop working, it’s also vital you set aside enough to live life to the fullest now. Get the balance right, and you’ll enjoy a long, happy ride into the sunset.