Super, Have you got enough ?

[Smoke Pursuit]

Originally Posted by GT0132

Super is great in that

- you can you get a tax deduction for the first $35,000 pa of capital invested each year. Sure, each contribution is taxed at 15% but thats better than the average income tax rate of 35%

- no tax when you take your benefit (if over 60)

- income generated by the money in your fund is taxed at 15%, not your marginal tax rate

- you can in most cases control it to some extent by changing the mix of investments to which the money is applied.

Downside is that the government can (and do) change the laws relating to super.-
i.e when you can access it, the application of income tax on the various components of it and the levels of contributions you can make to it.

Will I have enough of it? probably not and is why I invest outside super, mainly in real estate.

35k? Where's your fine print... Lol