Simple but fantastic strategy
QI am 53 years old, own my own house and contribute the maximum I can to salary sacrificing my superannuation. Due to age restrictions I have to retire from my job at 60. My wife started working part time six years ago and is self-employed. Also our children have left home.
What do you think is the best investment strategy for us now? I was thinking of after-tax contributions to my superannuation or investing in a managed share fund. Any advice would be appreciated.
Thanks for dropping me a note, Tony. I’ll keep it sweet and short. Money you put into super via salary sacrifice will be taxed at 15%. If you are on an average sort of wage, this could save you some 20% in tax alone. If you are a higher income earner, the tax savings are huge.
Top up your super into a good, low-cost fund. Don’t forget super is only a tax structure. In a good fund you can choose the investment option you want, so in effect it becomes a managed share fund, only you get a big tax break on money going in and you pay only 15% tax on earnings inside super. Fantastic!