Superannuation is the number one investment vehicle used to fund future retirement. The intention of superannuation is to incentivise, encourage and reward Australians for building wealth for their own retirement. Superannuation has the lowest taxation structure of any other alternative. To quote Tina Turner – it is simply the best.
Once you contribute money to your superannuation fund it is then invested in a number of different areas. These include:
- Defensive Assets – Cash, Australian Fixed Interest, International Fixed Interest
- Growth Assets – Property, Australian Shares and International Shares
It is important that you comfortable with the way your superannuation is invested and diversified.
Benefits of Superannuation include:
- Tax deductions
- Means tested rebates if you are an employee
- Favourable taxation on earnings (15%) and capital gains of superannuation funds – this is lower than most personal tax rates
- Further benefits at retirement
Other benefits include:
- Access to tax effective life insurance and disability cover (also known as TPD – total and permanent disability). Affordably made easier as you can use pre tax monies to meet the premiums.
- Asset protection – protected against creditors i.e. bankruptcy.
- Estate planning benefits.
Questions many people have about superannuation:
- Is my current superannuation fund right for me?
- I have multiple superannuation funds should I consolidate? If so to what fund?
- Am I invested the right way? Should I be taking more risk or less risk?
- Should I put money into superannuation or pay off my mortgage?
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