Su­per hits a soft spot

Money Magazine Australia - - FROM THE EDITOR -

We had some great feed­back on last month’s cover story, “Why you only need $275k in su­per to re­tire”. The sweet spot to re­tire­ment is cer­tainly a soft spot for a lot of our read­ers. Some feed­back was good, such as that from Kerry on Twit­ter who de­scribed it as “a prac­ti­cal ap­proach to re­tire­ment”. Oth­ers, like Martin on email, were not so pos­i­tive: “As a hard­work­ing gen Y tax­payer I am aghast at the thought of all my an­nual taxes go­ing to­wards older gen­er­a­tions who have failed to ad­e­quately pro­vide for them­selves.” You can read more reader com­ments be­low.

Good or bad, last month’s is­sue got us talk­ing about su­per and with the fed­eral gov- ern­ment’s new su­per rules for­mally kick­ing in this month, what bet­ter time. Even though con­ces­sional con­tri­bu­tions have dropped from $30,000 or $35,000 to $25,000 (this in­cludes your em­ployer’s con­tri­bu­tions), su­per is still one of the most tax-ef­fec­tive strate­gies.

I’m also pleased to an­nounce that Su­per Booster Day, a joint ini­tia­tive be­tween Money mag­a­zine and the As­so­ci­a­tion of Su­per­an­nu­a­tion Funds (ASFA), is back for a sec­ond year. The cam­paign is en­cour­ag­ing Aussies to make a pledge by Septem­ber 15 to boost their su­per. See page 31 for more de­tails.

This month we called on sev­eral ex­perts to put to­gether smart strate­gies for grow­ing

your wealth based on your in­come. And while you should never base an in­vest­ment de­ci­sion on tax ben­e­fits alone, some strate­gies clearly work bet­ter on a lower in­come than a higher one, and vice versa. We hope this month’s cover story helps you kick off the new fi­nan­cial year in a pos­i­tive di­rec­tion.

And watch out for our 2017 Real Es­tate Guide, which went on sale on June 26. There are 148 pages of real so­lu­tions to build­ing wealth through prop­erty (one home at a time).

Effie Zahos, Edi­tor, Money mag­a­zine

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