Every second person I talk to wants to know if they should access their $10,000 they are now able to out of their super. It could be $10,000 this financial year, plus $10,000 on the other side of the financial year, which makes $20,000. They may want to use it to purchase a property, or as a deposit.
What to consider
It’s important to understand the pros and cons of accessing the $10,000 early or leaving it in your super fund.
If you leave the money in your super, it could be volatile and go up and down.
However, if you take it out, it could have larger ramifications down the track.
I personally have a self managed super fund, I control the funds within my own super account, dictate where they go, I know what I do and don’t own in there.
Ask questions of your super fund
If you’re in a normal industry super fund, where’s your money going? The questions you need to ask your super fund are who is the person looking after your super?
What are they investing your money into? What is the growth rate? How do they minimise risk?
What were they doing before coronavirus, or before the GFD to be able to help you out and minimise the impact? How much money did you lose in February 2020?
These are all good questions.
In theory, pulling money out of super to use as a deposit is great, but it is having a big ramification when it comes to obtaining finance.
I’m seeing people access that money to purchase a property, only to find that banks are seeing those funds come through on statements and then rejecting the loan.
Do what suits you
The above issue makes it even more important to speak to someone and get tailored financial advice.
There may be other ways of capitalising on this current market and taking the opportunities that are out there that are better suited to you.
I’m not a financial adviser and you should speak to a financial adviser before you do anything with your super fund.
If you don’t have access to one you can trust, you can reach out to my team by clicking the below.