Most people aren’t aware of the fact that their superannuation fund has an earnings tax rate of 15% applied to the income. For example, if you have $500,000 in super, and have investment earnings of 5%, you will have to pay tax of $3,750 (15% x $25,000). This happens ‘behind the scenes’ and is automatically deducted by your superannuation fund.
In preparing for retirement, a common strategy is to downsize the family home to a smaller and lower cost home. By selling and purchasing a lower cost, smaller house, and pocketing perhaps $100,000 to put into your superannuation, you could benefit from drawing an additional income of circa $8,000 pa. in retirement.
Dallas Davison, Michael Hogue and Ali Hogue.
Money Over 50 Financial Advisers
Tel 07 4772 0938
45 Ingham Road West End Townsville Qld 4810
Money Over 50 Financial Advisers Pty Ltd ABN 26 146 225 505, 45 Ingham Road, West End Queensland 4810 is the holder of an ASIC Australian Financial Services Licence (AFSL) #471826.
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