Superannuation is really important because one day it will be the vehicle you use to fund your retirement and to take an interest in it early can make all the difference.
Why use Superannuation to save?
The Australian Government has made superannuation a tax effective investment because they want us to save for our retirement. It is the most tax-effective means to obtain a retirement income stream. For example, most individuals retiring after the age of 60 can receive an income from Superannuation tax-free.
Earnings from Superannuation are concessionally taxed, and superannuation contributions from personal incomes can be salary sacrificed to reduce personal taxation. Many people are eligible for Superannuation co-contributions from the government, which will increase retirement savings and reduce personal taxation. Superannuation ‘splitting’ is another savings mechanism that can apply to individuals that want to retire at an earlier age than their partner.
Is a Self-Managed Super Fund for me?
Self-Managed Superannuation Funds let you tailor an investment structure to better suit your individual needs. They offer you increased monitoring opportunities and allow you to hold a wider range of investments than most packaged funds, including physical property and more diverse shares such as derivatives.