FINANCIAL INDEPENDENCE
Balancing super contributions and early retirement goals
Hi there, here is something I've been struggling with for a few weeks. Background: * I'm looking to retire in 10-15 years (depending on market, salary growth, life events etc...) * Looking to minimise tax through salary sacrificing super (can add 10-14k per year depending on bonuses under the concession threshold) * Don't want to sacrifice time to retirement by putting too much into super and not having enough to live for potentially 15 years before I can access super. Keen to hear how other people in similar circumstances manage this when the investment timeline is 10+ years.
Amir Ibrahim.
11 December 2024
1 Comments
6 days ago
Hi Amir.
As you can see this it a bit of a push/pull conundrum with tradeoffs on both sides.
It depends on how old you are and how close you are to the super access age, either now and when you expect to retire.
You’ll have to figure out exactly how much you’ll need for that 15 year period, and then be mindful of the risk of market drawdowns during that period where you’re living off the portfolio until you can reach super access.
If you are able and willing to do some part time work during that time, it will help enormously in the success of your early retirement and seeing yourself through to 60+, so I’d strongly consider how you can build that optionality into your situation.
All the best.
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