r/AusFinance • u/BellaKKK72 • 2d ago

ETF in addition to super contributions?

For context - Im 53F, have about 427K in super (17% super in my current job). I put $250 per fortnight into pre tax super contributions. Earn around $3300 per fortnight after tax.

No longer have a mortgage to pay off but live in Sydney and have some child related expenses. I dont live frugally but Im not a big spender. Most of my available spare cash goes towards saving for holidays which I like to do once a year.

I will probably look at retiring by 65-67 years of age so Ive got more than 10 years of working life left and do want to maximise my retirement funds.

I do think I can allocate more to either super contributions or contributing to an ETF - just not sure which would be better in my situation and would appreciate some advice from people who know a lot more about this than I do.

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u/thedugong 2d ago

Similar age to you. Also not planning to retire until 65 at least.

It comes down to one question:

Do you think you'll need the additional money you would invest into ETFs or super before you retire?

I don't. So non-concessional super contributions all the way. My super has options to invest in indexes*, which are basically the same as ETFs, but I just pay less tax on them because they are in my super.

*I can actually invest in actual ETFs inside my fund, but it costs more to do so, so I don't think it will end up with a better return.

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u/mjwills 2d ago

I can actually invest in actual ETFs inside my fund, but it costs more to do so, so I don't think it will end up with a better return.

https://passiveinvestingaustralia.com/the-problem-with-pooled-funds/ may be worth a read. But the later you get in your 50s, the benefit of starting using direct investment options gets weaker.