Beneficiaries to benefit

in LeoFinance2 years ago (edited)

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That which is so universal as death must be a benefit.

- Friedrich Schiller -



I've always been and outgoing and spontaneous man - I've had some truly amazing experiences because of it - however, it's planning, calculated thought and action, that has placed me in a position to have the means to be spontaneous. Having the ability to make a quick decision and having the means to make it happen makes spontaneity a little more achievable mostly.

I've made very good and bad decisions in respect of future planning; I mean my general life and what I do with it and also financially.

I've learned many lessons along the way and have managed to make less bad more good decisions as time has passed. One of the the best decisions I've ever made is to invest and I've done so across various segments of the financial market with good deal of success along the way. Sure, some have not done as well as others but generally things move in the right direction.

One aspect of investment here in Australia is superannuation; it is mandatory for those who are employed and optional for self-employed people. There are third-party-managed super funds and self-managed also - Both are very strictly government regulated. Super assets totalled over $3.3 trillion in June this year.

The government regulate that a minimum employer-funded-contribution (percentage) must be paid into each employees' nominated superannuation fund and the employee has the choice to make voluntary salary-sacrifice payments into their fund also. The employer-contribution is considered part of a employees' package.

For example, my annual package is: $XXX,XXX + super (I negotiated the %) + car + phone + laptop + expanses + commissions. The whole combined is called OTE (overall total earnings.) Salary sacrifice-payments are on top and are taxed at a greatly reduced amount by the government so it can be a very good way of paying less tax and pumping the superannuation fund.

Generally, superannuation funds are not available to the individual until the designated retirement age, although there are exceptions, government initiatives, like when covid-19 prevented everyone from working (and earning) back in 2020. The government allowed people to draw up to $20,000 from their superannuation, and some probably really needed it to survive; many took it because they could and spent it on cars or whatever. Calculations were released that taking the $20,000 would mean the loss of more than $150,000 in fund-increases over the next 25 years. Still, many people (millions) took it which I think might come back on them rather hard down the track.

Anyway, I'm getting off-track here.

I guess my point is that I prepare for the future in many ways, financially being one of them. Will I get to benefit from it? I don't know, I could die next week for all I know, but hopefully I will live long enough to collect my superannuation funds. For now, I balance living and enjoying my present, enjoying an amazing fucken life, with planning to live the same amazing fucken life in the future, through financial planning.

Part of living means we'll die, and despite dying being easy, planning for it can be complicated. I'm across all aspects though, and even have plans in place in respect of my crypto-holdings being dealt with so my partner will not lose out.

Part of that is creating a binding death nomination for my superannuation funds.

The binding death nomination ensures that my superannuation fund distributes my funds (upon my death) to those I select - It binds the super-fund to distribute to those I nominate without question. Without the creation of a binding beneficiary (or multiple beneficiaries) the super-fund makes the decisions on where my money goes. It's a rather important document which is renewed every three years, I guess to make sure a person can change beneficiaries if situations have changed; divorce, death and other factors can change one's decision on who their appointed nominee is.

I received my form in the mail last week and will complete it today and when complete it will list my beneficiary/beneficiaries and apportion a percentage of my superannuation funds to each upon my death.

The beneficiaries have to fit a criteria of course, (sorry, I can't name you):

  • Spouse (Married, de-facto etc.)
  • Children (Natural, adopted, step-child, child of spouse etc.)
  • Dependant (wholly or partly dependant financially)
  • If you're my natural child I never knew about please let me know and I'll add you.

The document doesn't specify how many beneficiaries one can have so it could be one for 100% or one hundred for 1% each and any combination inside of that.

I'll admit that no matter how prepared or strategized with my financial matters I am, I don't put a lot of thought to binding death benefit nominations - it's out of sight out of mind - and generally wait until the form turns up every three years. I feel good once it's complete and sent though; there's a certain satisfaction to know that when I die the culmination of my hard work and effort will go to those I wish to be looked after financially; I want my beneficiaries to benefit.


I often wonder what plans and strategies other people use in respect of future life and financial planning. I know some don't give a flying fuck preferring to stick their heads in the sand hoping things might work out, but I also know there's many out there taking ownership and responsibility of their present and future. Which are you? Feel free to comment below.


Design and create your ideal life, don't live it by default - Tomorrow isn't promised so be humble and kind

Any images in this post are my own

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I tried so hard to move $50K of Super into bitcoin when it was $50.
If its my money they owe me a lot. If its not mine I wish they'd stop taking it.

Yeah, it's a bit like that...got it locked away until we're old. As they phase out the aged pension in years to come I think this mandatory saving scenario may work for some, but the concept won't ever work wholesale I guess. I suppose the key takeawy is to have a plan that may bring a person closer to financial independence.

Its just another tax, inflated away by money printing. By the time I retire my Super will buy me a coke and a snickers bar.

I heard they're bringing back the Polywaffle...or maybe they already have. I'd go for one of them over a Snickers...but it's personal choice.

We try to balance what we are doing. We’ve got the 401k which I think is what the annuation thing is you guys have, but we are trying to diversify into different things. We’ve almost pulled the trigger on a few things but haven’t for one reason or another. One of the ones we wanted to get into which seemed like it was a decent route, we later learned that it was controlled by the Italian mafia in the Southern New England area so unless we want to get our knees broken, that wasn’t a good idea lol was shitty too because it was decent! We are keeping it in our back pocket for when we move to a different area lol.

The thing that makes me hesitant about putting too many eggs in one basket like the stocks is that when things go poorly, you get a lot of it wiped out. I was in my early 20’s when 2008 happened and I watched my portfolio lost half its value in a week. It was brutal and I was stuffing it with money hoping for a solid retirement fund. Stuff goes to shit and it hurts a lot lol.

We are trying to get into real estate somehow, knowing that it’s a good hedge if you can do it correctly. Just trying to find the best opportunity for us before we dive in.

401K is similar to superannuation. yes, I just looked it up.

Diversity is very important, or so I believe, and the sooner one get's started, the sooner things progress towards creating a situation one could call financial freedom.

One of the ones we wanted to get into which seemed like it was a decent route, we later learned that it was controlled by the Italian mafia in the Southern New England

This could have been good...All you'd need to do was watch Casino and Goodfellas and you'd be good to go. Seriously though, maybe you dodged a bullet here, quite literally.

I watched my portfolio lost half its value in a week.

Yep, I've seen the same, the GFC was rather fucken brutal. This is where diversity helps to mitigate risk. It's a good lesson to learn.

We are trying to get into real estate somehow, knowing that it’s a good hedge if you can do it correctly.

I was a commercial and residential real estate agent, investor and developer for over twenty years...It can be very lucrative but for sure, as you say, the best/right opportunity needs to be found...and even then, it could all go to shit. Diversity again, is the best way.

Did you leave out the mistresses & 15 cat beneficiaries? Or are they covered in the offshore accounts?😝

Lol, yeah all the cats are catered for, and my 37 illegitimate children also. They each get a share of my $3.47 fortune.

We are live for the now mostly. Jamie thinks any super is good as he a) would never have had it in the UK and never have saved and b) earns more here than he ever would have in UK and c) thinks the world will end anyway

I'm just winging it as I can't do anything about it. Luckily we can do emergency teaching and mechanics until we die 😂

So, the plan (strategy) is emergency teaching and mechanics. Good plan.

Sooorrta. A very vague one!!

Every three years, hey? I haven't received one before from my super fund. Perhaps I should chase that up...

Though, I'm reminded now that I wanted to switch to a different fund

Should chase that up...

You're in Australia? If so, yep I'd suggest you chase it up.

Edit: I see you're in SA like me. So yeah, you might want to look into it. If you haven't set beneficiaries then you'll not get the nomination form. When you do, make sure you make it binding so that the super fund has to give it to the beneficiary you set.

Yeah mate, down in SA. Solid advice. Thank you. It's one of those things, you know? On the big list to get through, but that list often takes a backseat to the day-to-day business of survival. But truly, I'll get onto it. Appreciate the detailed explanation!👍

You are very careful in preparing your life prospects, I also occasionally think that way.

But I haven't dared to consider it further, what I feel is not fully a guarantee of old age.

I now have a culinary business, and it really depends on me, how can I pass this business on to my children, or maybe my wife. But it may not happen when I die later. Sometimes times are not the same, so are desires, what children want, go to school, continue their education to college, who knows. life is surprising too huh 😅😅😅

Greetings from Aceh to @galenkp

I am yes, it's because I take responsibility for myself, ownership, and want to design and create an awesome life. It's my choice, as is it is everyone else's to create a great life, or not.

But I haven't dared to consider it further, what I feel is not fully a guarantee of old age.

You're saying, why bother as you may not make it into the future?

I get that...but what if you do and haven't prepared for it financially. Starving to death in the gutter doesn't sound like a very nice way to go I think. Still, each needs to make a choice, and many will choose to be ill-prepared. No matter what people choose, they will reap from the harvest of that which they sow.

I'm currently 38 years old, and I think it's time to consider that. We don't know, maybe tomorrow it could be bankrupt or even God will give us a shorter life.

Hopefully I find the right pattern to anticipate the possibilities that occur. Glad to learn from your experience @galenkp

you are a very good person. You take into account and think about everything in detail. I hope you will live a long and happy life always. Hurry up for treatment if you are sick and don't forget to live a healthy and happy life because happiness is the key to a long life.

you are a very good person.

Sometimes and sometimes the opposite.

You take into account and think about everything in detail.

Not everything, most though.

if you are sick

Nope, I couldn't be more healthy if I tried.

I'm trying to understand you, and I only pray for you, may your success bring a good impact to those around you. can we be friends?

I'm trying to understand you

People have been trying to do this for many years...I mean in my real life, offline. They're mostly yet to do so although there's one or two who might be getting close. 😊

Thanks for you commenting, I really appreciate it. Over time and more comments I'm sure an accord can be reached. All the best for the weekend.

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Thanks @steemflow, I hope you have a good weekend.

Planning is a virtue many fail to adopt, Although I'm still very young, my friends often laugh at me saying I think and plan too much.

Personally I do so because I learned from a very young age that when you fail to plan, you plan to fail.

Now at least I know I'm not stupid for always planning, thanks for sharing your planning experience with us.

Saving throughout ones working life, via a pension or provident fund (perhaps different wording, similar outcome) I feel each country should have strict rules implementing finance toward old age.

Writing a Will over here is up to the individual finding a company who deal into this line of business to speed up closure of an estate on death (around 6 - 8 months), when left to normal processes/procedures this can drag out over a year or two.

After saving for a rainy day, save for holidays, live a frugal life without spending on bits and bobs not needed.

Plan for tomorrow as best one is able!

I quite dislike mandates of any sort, but Australia's system makes a lot more sense than the American official Ponzi scheme of "Social Security." There is no trust fund, insurance pool, or savings account. Current workers basically pay the benefits of retirees. It worked great for boomers and perhaps Gen X, but the basic math means millennials will get the shaft, and zoomers are totally screwed.


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