Why Ignoring the Basics Can Cost You Thousands

When people hear I’m a financial adviser, the first thing they often say is

“Financial advisers are expensive!”

But it’s all about perspective.

These same people are usually the ones upgrading to the latest phone every year or trading in their car every two years.

Good financial advice should pay for itself many times over in the long run. That phone? It’ll probably end up in a drawer within a few years, gathering dust.

Focusing on the Exciting (and Missing the Basics)

I get it. Investment properties, share portfolios, and tax-saving strategies sound exciting. When you hear about the wins others are having in these areas, it’s easy to get wrapped up in the hype. But here’s the kicker—those aren't always where you’ll move the needle the most, especially if you’re missing the fundamentals.

One area that’s often overlooked? Your super.

Now, I know what you’re thinking—your super feels like someone else’s money, right? It’s sitting there, accumulating, but it’s not really something you think about day to day. But here’s why you should: ignoring your super could mean you’re missing out on thousands of dollars in retirement savings.

Let me share a story.

How One Decision Made a $100,000 Difference

I was recently working with a couple in their mid-40s. Both had been with the same super fund since their early 20s, earning similar wages and working in the same industry. On the surface, you’d expect their super balances to be pretty similar, right? But when we dug a little deeper, we found a big difference—her super balance was around $100,000 more than his.

What was the reason? She had picked one investment option, and he had picked another.

That was it. One decision, made years ago, probably in a rush while filling out some paperwork, and it had led to a six-figure difference in their super balances. It was a simple box on a form, but that decision had a massive impact.

So, next time you’re focusing on the exciting parts of your financial plan, make sure the “boring” stuff, like your super, is in check too. It might not seem thrilling, but it’s the kind of detail that can have a huge effect on your financial future.

It’s Not Just About Products—It’s About Strategy

Now, I don’t usually talk too much about the products in financial advice. That’s because most of the value you get from advice comes from having the right strategy in place and staying on track with it. But sometimes, reviewing your products can lead to some easy wins, too.

Take insurance, for example.

I had a client who had her insurance cover through her industry super fund. Now, super funds often provide what’s called “group cover.” This means they cover all members under the same policy, regardless of their individual situations. And while that sounds convenient, it can be problematic when your circumstances don’t match the general cover offered.

In my client’s case, she had a couple of kids, a few loans, and a high salary to protect. But the insurance cover she had through her super wasn’t anywhere near enough. Worse still, because the fund’s cover was spread across members with riskier occupations, she was paying much higher premiums than she needed to—despite working a desk job herself.

To top it off, the quality of the insurance wasn’t great either.

By reviewing her insurance options, we were able to get her much better cover, at the right level for her needs, and save her 66% annually on her premiums. That’s money back in her pocket and peace of mind that she’s now properly covered if the unexpected happens.

Want to know more?

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The information contained in this article is general information only. It is not intended to be a recommendation, offer, advice or invitation to purchase, sell or otherwise deal in securities or other investments. Before making any decision in respect to a financial product, you should seek advice from an appropriately qualified professional. We believe that the information contained in this document is accurate. However, we are not specifically licensed to provide tax or legal advice and any information that may relate to you should be confirmed with your tax or legal adviser.