Money Tips 21 to 30 Explained

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3 Responses

  1. Jef says:

    I like it Tom, these are princples that most can follow.. Not convinced about Super though with the way the govt keeps changing the goal posts.. What are your thoughts on this?

    • tom says:

      Thats a super question Jef (see what I did there 🙂 love it!). Anyway… My view is that while the government may chop and change their mind around limits and tax rates and contributions and preservation ages, there is one thing I don’t think will ever happen. I don’t think the government will ever change super contribution and investment return tax rates to be higher than I pay outside super. Anyone earning over $18.2k is paying 19%+ tax on those dollars (many people will be easily over 32.5% too). So unless you plan to stop working and have interest/investment earnings under $18.2k per year to live off, then super will still give you tax savings. All of this is assuming you are happy/able to wait to access that money. So I see super as a fantastic place to put my very long term investments (at my age long is 30 ish years), as it gets fantastic tax breaks.

      One of the options I was looking at for an investment property (before putting that on hold) was whether buying a rental inside super would be better or worse than outside. Still haven’t finalised my thoughts/calculations on that one as there are a large number of variables that can change the outcome. (eg: if I wanted to use the rental income to live off before I retire.)

  2. Jef says:

    Thanks for the extensive reply there Tom! If you were speaking with me 12 months ago would have agreed with you 100% and I still see it as a decent investment option however I also see the govt becoming increasingly possessive over super i.e. limiting the amount you can put in there to 1.5 million.. Essentially I’m not really a fan of someone else having a decent amount of control over money that I won’t be able to touch for 40 odd years anyway

    Having said that I’d be the exception rather than the norm

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