NO, because superannuation is not an investment, it is a tax advantaged vehicle:
- Maximum tax rate of 15% whilst in accumulation phase
- Capital gains tax effectively reduced is 10% of the gain for assets held longer than 12 months
- 0% tax when the fund is paying a pension and if you are over 60, you pay no tax on your drawings from super.
Super income can also be more effective when it comes to social security benefits (e.g. age pensions).
So when you next hear someone say ‘Super is a bad investment’ you know this statement is flawed.
It is HOW the funds are invested within super that is bad.
To discuss these matters further, call Stephen Mason or Russell Orr of Customised Financial Planning on 02 9548 5933 or click here to make an enquiry.