Superannuation is the user-pays philosophy of funding your own retirement. Unfortunately, and despite the government’s best efforts, it is very complex and requires a deep understanding to maximise its potential. If utilised fully, superannuation can form the centrepiece of your investing, asset protection, tax and estate planning objectives.
Incurring a maximum tax rate of 15%, superannuation is a very desirable way to grow and retain investments. The low tax rate, particularly when compared to individual tax rates (which can be as high as 49%), allows you to retain more of the investment return for yourself, as opposed to handing a larger portion over to the government. All this equals more money for you when you retire.
Holding personal insurances, such as Life Insurance and Total and Permanent Disability Insurance , through your superannuation can be cheaper as well. These insurances can be tax deductible to the superannuation fund essentially allowing you to pay the premiums with your pre-tax earnings. This doesn’t impact your household cash flow as the premiums are taken from your existing super contributions, not your after tax earnings.
In addition to the above, superannuation also offers increased protection of your assets, coupled with greater certainty in estate planning. All these benefits make it a very attractive vehicle for many Australians.
To ensure you are taking full advantage of your superannuation, speak to one of our highly qualified advisers today.
Self Managed Superannuation Advice
More and more Australians are taking control of their superannuation by establishing a self managed superannuation fund.
Although taking charge of your superannuation might be the right strategy for you, this is an area where you should seek professional advice before deciding to manage your own superannuation.
Understanding the regulated environment in which SMSFs operate can be a challenge. The advisers at First Financial are best placed to assist you through the whole process from initial discussions about an SMSF’s appropriateness for you, through to helping choose your investments to ongoing management and maintenance and everything in-between.
To ensure you are harnessing the significant benefits SMSFs have to offer, speak to one of our highly qualified advisers today.