The retirement days are special for an employee that believes in hard work and good savings. Working endlessly without saving for the future is inadequate. Opting for an innovative and safe form of deposit becomes the need of the day and Australian superannuation is one such super fund which ensures that the returns are good and not too taxing on the income.
The Australian superannuation is a growing trend and many employees have opted for the self managed super funds. The investors are opting to invest in the residential real estate market. This particular facet of Australian superannuation appears to be a great strategy. However, to be on the safe side of the investment strategy, investors prefer to do a proper homework so that mistakes may be avoided.
Why Opt for a Superfund?
There are many advantages of investing in superannuation. First and foremost, it allows the investor to build up on funds gradually until the retirement age is attained. Employees are generally and legally entitled to join a fund when they are employed. In addition to the company run fund, employees may also join a self-managed superannuation fund or the DIY super money.
Self Managed Funds
The superannuation funds that are self managed are typically established for a small group of people comprising 5 members. The self managed superannuation fund is regulated by the Australian Tax Office. The fund members thus become the contributors and trustees of the fund. They are responsible for its operation and the creation and implementation of the investment strategy. The assets are strictly meant for providing retirement benefits. The funds are safe as they may never be used for the personal benefit of any of its members.
The Merits of Availing Superannuation and Other Super Funds
Super funds, including the much in news Australian super money, are advantageously exempt from tax deductions. The super funds are entitled for tax concessions including lower income tax and the permissible deductions for contributions made. Superannuation also enjoys government benefits. In some rare cases, the Australian superannuation may provide insurance coverage and disability insurance for its members.
The icing on the cake is the fact that anyone can join the super fund scheme, irrespective of whether the individual is employed or not. Flexibility offered to the person contributing to the superfund is another advantage. Self employed individuals may also contribute to the superannuation scheme and avail great returns.