Superannuation Contribution and Time Value of Money in Corporate Financial Management

CORPORATE FINANCIAL MANAGEMENT

Contents
Executive summary....................................................................................................................3
Introduction................................................................................................................................4
Superannuation contribution......................................................................................................5
Relevant factors that need to be taken into account...................................................................7
The concept of the time value of money....................................................................................8
Recommendations......................................................................................................................9
Bibliography.............................................................................................................................11

Executive summary
There has been an implementation of various types of strategies which have helped the
employees to multiply their savings but one of the major strategies which have been very
helpful for them is the funding through superannuation. It has proved to be a very sagacious
approach for the employees in order to gain benefits of their savings in near future. It is very
important for a person to invest in a strategy which is well just so that he may get positive
returns. So, in this report, the major factors have been taken into account about the tertiary
sector employees who are judging whether or not to contribute their savings in the
superannuation approach. Also, the types of plan in which the employees need to invest their
savings have also been mentioned with the help of analysis of time value of money and the
taxes.

Introduction
The application of the superannuation strategy in the organizations has helped to inculcate the
knowledge of savings and investment in the minds of employees. The collection of the
superannuation fund and using those funds in order to invest in activities which will provide
much more returns to the Employees will provide a great help to them. Before making the
investment, the tertiary sector employees should try to determine several different factors
upon which they need to make the choice of the type of plan in which they are going to invest
their savings (Siciliano, 2015). The employees can either choose the investment choice plan
or defined benefit plan. Time is a very important factor in making investments and hence the
investors will be required to analyze the market conditions and the stocks and assets relating
to the plan in which they are going to invest. This will thus help them to ensure that they will
get sufficient returns on their saving (Taillard, 2013)s.