Super!

I just found I've got ~$9000 of super per year of adulthood. It really went up recently after it not doing much for a while.

Anyway, it's more than I expected!

 

Not bad, but you can do better.

 

I love super, great investment vehicle. Mine is a mix of cash, shares and commercial property

 

Super is a great tax haven. I am still amazed at how some people are not drooling over it.

I am 100% equities in smsf. Cash and property outside super.

 

That's what I'm looking into.

 

Highest risk and highest return asset goes into the longer term time frame structure.

If you speak to a person who says that you need your 30 year investment horizon to include mandatory cash....

 

With many funds returning >10% this year and +ve returns for the last 8 years, much better than doing nothing with 10%.of your income.

 

You bet. 1 July our maximum CC's went into SMSF.

Shame about the IP and Cash outside Super!

 

Why not just put your money in property (not in a superfund) or some other investment vehicle? Why would you want it somewhere that restricts borrowing capacity and poses restrictions on what to do with that asset???

If you have to because the government is emposing it as a condition of working for a salary then you have no choice. However if you do have a choice then why would you choose to?

Genuine question btw!!!

I have never understood super enough to see an advantage in it. I pay it for my staff (I have to) but do not see any benefit of parking my own money there.

 

The attraction of tax free income stream after retirement does nothing for you?

 

Do you operate through a trust so super isnt compulsory for the business operators? There is certainly an argument for sole traders and trust structures to invest the otherwise super paid money into growth assets

 

A 65% instant cash uplift by concessional tax treatment is a good starting point

$51 v $85

And then the compounding....

 

I'd sacrifice accessibility for $34

 

For me super is a bitter/sweet. At 35 years old I know when I get my super (if I'm still alive) it will be more like....meh, ok got it... .. nothing special. If I could access it in the next 2 years I'd be a lot more excited about it than having to wait until 70?

 

ok got it
It just clicked why my accountant advised against super.

Won't go into it here.....

 

I was the same until our accountant started using strategies to significantly reduce our tax using SMSF. I leave it to my accountant as I am a simple person, let the big guns sort it out.

 

I am drooling in it .

 

Me too
Right now the advice for me is NO!!!

I just run my business - accountants sort out the rest.

 

We were keen on financial independence / early retirement. So I looked at our savings as two pots. First pot to last from early retirement to when able to access Super. Second pot is Super which takes care of lifestyle expenses from then on.

Of course the first pot takes priority early on so it's more about maximising "tax deductible" contributions in Super and letting assets compound in low tax environment. As first pot is nearing its goal then one can start pouring after tax contributions into Super.

 

When young I didn't like putting money into Super but knew it would serve its purpose down the track as mentioned in my previous post. But now I'm able to access it my God it really is something to drool over. The fact that I just scraped in on being able to access Super at 55 added even more drool factor.