Beneficiaries to benefit

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

- Friedrich Schiller -

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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.

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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.