On... The Power of Super
Wealth is like a bucket of leaking water - you need to constantly fill it up or it will run dry. I spoke to a friend and he thinks as long as you work hard and earn lots of money, you can outsource your financial management to your Superfund. Whilst some other people think that you should manage your own wealth. I don't have a strong opinion but I tend to favour the latter. Since it's your bucket, who better to look after it? I ran some numbers for comparison with the following assumptions. High Earner has a Lifetime Average Salary of 200K per year with 10% Super contribution. His Superfund returns 6% after fees annually. Lazy Compounder earns enough money just for living expenses - although he spends most of his time managing his investment resulting in returns of 15% annually. Assume they both have 200K invested by the age of 40. Let's see how they fare over the next 20+ years. The chart above shows their net worth by age. By the time they retire ( roughly 60...