By Teresa Frangos
I keep telling my son to contribute more into his super, so that when he’s my age he’ll have more than enough to retire. I will say ‘just put in a little extra’, but no – he just won’t listen. Instead, he’ll say “that’s such a long way off” or “pfff… ages to go!”, but here’s a secret – it’s not that far away!
When you have cash to burn and no responsibilities, it’s the perfect time to contribute extra into your super, and start to exploit the magic of compound interest. Simple interest is interest paid on the principal amount only, but compound interest is interest on interest; interest paid on the principal and the interest that accumulates, meaning you get richer. You can’t go wrong.
Go on – put a little more in, you won’t even miss it! And even if you do, if it does get too hard, you can stop at any time.
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Ben Kemp (AR 1253603, CRN 497425) is an authorised representative and credit representative of PB Financial Solutions Pty Ltd – trading as Burke Britton Financial Partners & Securelife Financial Solutions. ABN 67 097 381 523. PB Financial Solutions Pty Ltd – trading as Burke Britton Financial Partners & Securelife Financial Solutions ABN 67 097 381 523 is an authorised representative and credit representative of AMP Financial Planning Pty Limited, Australian Financial Services Licensee and Australian Credit Licensee ABN 89 051 208 327. Licence No: 232706.[