superannuation

invest TAX effectively

Superannuation is a form of enforced savings wherein money is set aside by you and/or your employer and invested to fund your retirement. Superannuation is generally an ideal way to invest tax effectively (refer to ‘Salary Sacrificing Advantage’ link) . This is largely due to the government’s commitment to Superannuation as a mechanism for funding our ageing population.

Tax Advantages:
A common strategy that utilises the tax benefits of Superannuation is Salary Sacrificing. Please click on the ‘Salary Sacrificing Advantage’ link to best illustrate the effectiveness of salary sacrificing a portion of your income into Superannuation versus using your after tax dollars to invest on a regular basis. Each scenario has the same after tax cash flow but as you will see a dramatic difference in lump sums at the end of a 20 year period.


Download PDF: Salary Sacrificing


Portfolio Design and Management
A critical aspect of Superannuation, as with any wealth creation strategy is portfolio design and management. Although it may be years before you access Superannuation funds this doesn’t mean you should neglect or ignore your Superannuation account.


In fact it should be quite the opposite, especially considering the favourable tax treatment. It is crucial that your portfolio is expertly designed (see ‘Portfolio Design and Management on the Wealth Creation link). Even a 1% p.a. out-performance over 25 years could mean hundreds of thousands of dollars extra for your retirement and maybe the difference that allows you to live comfortably during retirement. Please refer to the Wealth Creation link and the ‘Effects of Outperforming’ link - Pension Phase.

Fees
Fees are an important issue. You wouldn’t want to be achieving the same performance as everyone else but paying higher fees. Conversely if your portfolio has the ability to out perform over the long term then you don’t want to stay with a fund purely because it has low fees and as a result miss out on added returns. The idea is to find the right balance between investment choices which are essential when designing a high quality portfolio and fees.

Other

  • Superannuation with Capital Guarantee Protection and a Profit Lock In option
  • Transition to Retirement Strategies
  • Insurance in Superannuation (free up your personal cash flow)
Download PDF: Capital Guaranteed Super

CNP Financial Innovation is a corporate authorised representative of the Australian Financial Services Licensee WealthSure Pty Ltd. License No 238030. 34 Hasler Road, Osbourne Park WA 6017.
it's your money
Ask yourself, is your Superannuation invested to suit your tolerance to risk or your administrators?

Take an interest in your Superannuation. It’s your money (not just an employer expense).

Ensure your Superannuation is invested for maximum long term performance in relation to your tolerance for risk.