Pay yourself a BIG favour
Pay more into your superannuation and achieve fantastic rewards.
Are you contributing enough to you super fund? Probably not.
Recent research highlights the reality that most members, do not make voluntary contributions to their super fund.
A recent collaboration between big super companies shows how over 2.3 million Aussie members manage their super fund accounts. Only 12% of members receiving compulsory super guarantee 9.5% – called ‘SG contributions’ – are making extra payments. Even though you never see those payments until you retire.
The report shows that only 8% of working members, receiving the 9.5% SG, make salary sacrificed contributions. Just 3% of members also made non concessional (after tax) contributions, while only 1%, made both non-concessional & salary sacrifice contributions.
The message from this research, is that super fund members should understand, what steps you can take – to boost your retirement savings – depending on your personal facts.
Because, in my personal view, Aussies will not have enough to retire on comfortably. The Aged Pension, as we presently know it, will not exist in 6-7 years’ time –that’s only by 2025. Prepare yourself for some big financial shocks, in the years ahead.
Go ahead with salary sacrificed contributions in to your super
For employees, the best way to save money into super, is to begin making salary-sacrificed contributions to yourself. Even those doing it already, should pay more.
You will get fantastic financial benefits, when that ‘sacrificed’ amount is partly paying for your investment home loan. Come and talk to me about how this all works.
As with all concessional (before tax) contributions, salary sac contributions are not taxed, at your normal higher tax rate. It is taxed at the lesser 15% when going to your super.
And guess what? – you’re allowed to reduce that to NIL TAX – when your super fund is buying one of our quality ‘off the plan’ (OTP) investment properties– with rental guaranteed for 10 years in the Berwick area.
You cannot find a better way of legally pay nil tax and increasing your super via one of our investment properties – inside a Self-Managed Super Fund (SMSF) house. Your normal super fund won’t allow that, but we can – all legally – and you won’t regret.
Making salary sacrificed contributions, is just like you getting a good pay rise, without even knowing. It is a simple and disciplined way to make yourself remarkably wealthier.
First speak to us and then your employer, because most employers are confused. Tell your employer how much you want to contribute each pay day – speak to us first.
Keep in mind, that the annual concessional (before tax) contributions cap is $25,000 pa. This $25K cap includes (1) compulsory SG (2) salary sac (3) personal contributions.
After Tax contributions
Clever super members can take advantage of opportunities to contribute more to your super as non-concessional (after tax) contributions – when you receive some money, by setting up your own SMSF.
Being ready and able to make extra personal payments, whenever extra money becomes available, is the smartest way to quickly increase your wealth & prosperity.
The standard non concessional cap is $100,000 this year. Fund members under 65, have the option to ‘bringing forward’ non concessional of up to $300,000 over 3 years, depending of super balances. Recent Budget proposes to increase age limit in 2020/21.
How to be even cleverer with your super money
Many traditional super funds put your money at risk – like they did in 2018. They lack honesty & capability, coupled with bad culture and lack of ability in professional standards, or how to properly handle ‘conflicts of interest’. They put themselves first and you a very sad last.
You are paying them, unknowingly, to lose your money.
You are also paying them ‘financial advisory fees’ – without receiving any advice.
Your unknown payments in super could (are?) breaking the law – called the ‘sole purpose test’.
All this confirms, why you should give serious thought to setting up your own SMSF. You will save plenty by not letting these vultures, ‘steal’ your money and you can make much more in our specialist investment housing organisation.