Focus on investment options for super account selection

Choosing a superannuation account for your 15-year-old son can be straightforward. Since he has started working, he needs to select a super fund for his savings. It's important to focus on the investment options available rather than just the fund itself. For a first super account, major industry funds are a suitable choice. These funds often default to a balanced option but considering your son cannot access this money for many years, it might be better to choose the most aggressive investment option offered. While it can be a risky ride, over the long term, he is likely to appreciate the growth. Fees are also a concern. Generally, funds cannot charge more than 3% in total fees for balances under $6,000, which offers some protection. For those nearing retirement, like parents in their early 60s, transitioning super savings into a pension can be beneficial. Once super is converted to a pension, all earnings from that balance become tax-free. Although there are minimum withdrawal requirements, any excess can be invested outside superannuation. If expecting a significant inheritance, consider contributing some of it into super to enhance tax efficiency. However, if contributions exceed limits, the excess will be handled as personal investments and may be subject to tax. To give money to children within five years, it’s important to understand superannuation access rules. One must reach age 65 to easily access super funds regardless of work status. If you want to gift money before age 65, you must have met certain work criteria, which might not apply to everyone. Consulting a financial planner can be beneficial for tailored advice on superannuation and other financial matters.