SMSF a valuable investment vehicle
14/12/2011 by Michael Dietrich CPA
I can't believe how quickly Christmas has come around this year. I am looking forward to sharing Christmas with the family and telling a few stories over a couple of drinks.
There are a few common things that I often hear when I say that I specialise in self-managed superannuation. Firstly, I hear the comment I don't want to put my money into super because they change the rules all the time. The second common comment I hear is I don't want to invest in superannuation because it is too risky.
Well yes the rules change but the fact remains that Superannuation is a concessionally taxed investment vehicle and that it is very unlikely to change. The earnings inside superannuation are taxed at 15% and 0% if in pension phase. This is substantially less than outside superannuation. A company for example is taxed at 30% and a trust flows through to the individual that could be as much as 47.5%. The tax advantages of superannuation make it the ideal vehicle to build wealth throughout your lifetime.
Being an investment vehicle, superannuation in itself can't be termed risky in that context. Just like you wouldn't say a company or family trust is too risky to invest in. The risk comes from the actual investments inside the structure not the structure itself. Your SMSF specialist can help you determine the best type of investments based on your risk profile and your wealth creation goals.
The introduction of compulsory superannuation by the Keating Government has helped us all to have the opportunity to build our wealth creation portfolio and take control of our own destiny. Maybe this year your New Year's resolution should be to put a bit of extra money into superannuation. Follow us on twitter @SMSFAuditor. blog comments powered by Disqus
There are a few common things that I often hear when I say that I specialise in self-managed superannuation. Firstly, I hear the comment I don't want to put my money into super because they change the rules all the time. The second common comment I hear is I don't want to invest in superannuation because it is too risky.
Well yes the rules change but the fact remains that Superannuation is a concessionally taxed investment vehicle and that it is very unlikely to change. The earnings inside superannuation are taxed at 15% and 0% if in pension phase. This is substantially less than outside superannuation. A company for example is taxed at 30% and a trust flows through to the individual that could be as much as 47.5%. The tax advantages of superannuation make it the ideal vehicle to build wealth throughout your lifetime.
Being an investment vehicle, superannuation in itself can't be termed risky in that context. Just like you wouldn't say a company or family trust is too risky to invest in. The risk comes from the actual investments inside the structure not the structure itself. Your SMSF specialist can help you determine the best type of investments based on your risk profile and your wealth creation goals.
The introduction of compulsory superannuation by the Keating Government has helped us all to have the opportunity to build our wealth creation portfolio and take control of our own destiny. Maybe this year your New Year's resolution should be to put a bit of extra money into superannuation. Follow us on twitter @SMSFAuditor. blog comments powered by Disqus
