Superannuation is one of the most tax-effective ways to invest for your future. It is also one of the most misunderstood.
Rather than thinking of Superannuation as an Investment people should view it as a Tax Saving Vehicle.
These days virtually whatever you can invest in, in your own name you can also invest in through Superannuation. The difference is that your superannuation pays little or no tax.
The benefit of this cannot be over estimated.
For example investing $10,000 in shares in your own name or in superannuation at age 30. By the time you are retired at say age 60 the amount you have available for your retirement assuming a return of say 12.0% before tax would be approximately as follow: Invested in your name (after tax) – $127,267
Invested in Superannuation (after tax) – $304,318
So even though you are getting exactly the same percentage return in your own name before tax you are far wealthier if you have invested through superannuation.
Superannuation is one of the best vehicles to invest through to achieve terrific tax efficiency and a Self Managed Superannuation Fund (SMSF) adds another level of flexibility and control that can improve returns further again.
A SMSF is not for everyone. It requires that you accept a greater level of responsibility and involvement in your Superannuation.
The Advisers at Perth Finance Center are well versed in assisting you to enjoy the benefits of a SMSF without fuss.
We are available 7 days a week, and can meet you in the comfort of your own home or office. Alternatively, visit us at our centrally located office by appointment: Unit 1, 103 Garling Street, O’Connor WA 6163