Yeah I understand that, the concessional ones are the ones you get the tax deduction on. Eg, I save my self 15% tax by making a concessional contribution, I am just saying I don't know why you would want to avoid those contributions.There are concessional and non concessional contributions, each are treated differently and both are subject to different treatment.
It probably is nothing, just a thought bubble.
NoYeah I understand that, the concessional ones are the ones you get the tax deduction on. Eg, I save my self 15% tax by making a concessional contribution, I am just saying I don't know why you would want to avoid those contributions.
Am I missing something?
When you own a company and are no salary man, your annual income is something you control more than the average wage person.A discretionary trust with income streamed to a bucket company could also be a good option.
I would never advice someone below 50y old to put money in super if he she has choices
The only thing " wrong " with super is the necessity for every young worker to do some research right from the first pay slip , to not get caught in a dud fund where you could be paying more in fees and charges and unnecessary insurance than other cheaper , Industry and Not-for Profit Superannuation Funds .there is nothing wrong with super,
I little bit of research is necessary for just about everything we do in life. Everyone ones personal finances are their own responsibility.The only thing " wrong " with super is the necessity for every young worker to do some research right from the first pay slip , to not get caught in a dud fund where you could be paying more in fees and charges and unnecessary insurance than other cheaper , Industry and Not-for Profit Superannuation Funds .
I little bit of research is necessary for just about everything we do in life. Everyone ones personal finances are their own responsibility.
if you don’t care enough about your money or your retirement to commit spending 5 hours or so learning the basics of super and making sure your account is set up right. Then you probably deserve the mediocre return you are going to get.
It is a problem, I get asked often about super by people who are either losing money or going nowhere with their funds and yet highly educated.
I know its a dummer and dummer situation for anyone not doing the basics but anyone could just open a E-Super SMSF put the whole lot into VAS and beat a lot of superfunds, there is something not right with the system when that happens.
Super being a tax haven pays big time particularly in my retirement all earnings tax free I feel guilty that being the case.
As I said to a rich mate, who said exactly the same thing.Super being a tax haven pays big time particularly in my retirement all earnings tax free I feel guilty that being the case.
Don’t feel guilty about your super being tax free in the pension phase, remember the altrnative is the government having to actually fund your pension.It is a problem, I get asked often about super by people who are either losing money or going nowhere with their funds and yet highly educated.
I know its a dummer and dummer situation for anyone not doing the basics but anyone could just open a E-Super SMSF put the whole lot into VAS and beat a lot of superfunds, there is something not right with the system when that happens.
Super being a tax haven pays big time particularly in my retirement all earnings tax free I feel guilty that being the case.
Don’t feel guilty about your super being tax free in the pension phase, remember the altrnative is the government having to actually fund your pension.
its much better for the government to let you have your earnings tax free, for you to be be drawing a full pension at their expense.
Also remember your super paid taxes over the years as well and when you spend your dollars you still pay gst.Yes agree plus I had high earning most of my life that put me in the higher tax brackets (which I paid) until I got a little relief from neg gearing in property.
You can always justify your position so I do try and keep an open mind FWIW.
fascinating. Who'd have thought?Also remember your super paid taxes over the years as well and when you spend your dollars you still pay gst.
Most of the dollars your draw out of super are after tax dollars anyway, either dollars you put in yourself and were taxed at 15% on the way in, or earnings that accumulated over the years and were taxed at 15%.
Do you have any recollection of the super rules pre Howard/Costello?Also remember your super paid taxes over the years as well and when you spend your dollars you still pay gst.
Most of the dollars your draw out of super are after tax dollars anyway, either dollars you put in yourself and were taxed at 15% on the way in, or earnings that accumulated over the years and were taxed at 15%.
I was more interested in Ninja Turtles and goosebump books then.Do you have any recollection of the super rules pre Howard/Costello?
You know, the rules that applied when the mystro Uncle Paul brought them in and those the current Government kept referring to, before the 2019 election and the franking credit debacle?
Obviously not.
I would have to find them, but in genereral terms from memeory, there was a RBL wherby the amount you could have in super was limited (that is being re introduced with the caps).I was more interested in Ninja Turtles and goosebump books then.
But that was 30 years ago the majority of super balances would have been built since then. That’s how compounding works.
But, feel free to fill me in.
That's good recall Belli, can you remember how the min max age related drawdowns worked, it was designed to stop people just pulling their money out ad lib and then running out.The good ol' RBL. A pain if you got it wrong.
Designed to limit the amount of retirement benefit and termination of employment benefit you could get.
There were two types of RBLs. A lump sum RBL and a higher pension RBL. Both were indexed to the AWOTE. The higher RBL was for people who took at least 50% or more as a pension. It could not be commuted back to a lump sum. It was a bugger of a thing apparently with the pension as two could be taken, called excessive savings and taxed at the max and the first received a rebate (from memory 15%). Abolished in 2007. Funny thing when you look back is that the pension RBL was not too far short of the then $1.6m balance cap when that was introduced.
Read somewhere the ATO gave a sigh of relief when it was abolished as the cost of maintaining the system to monitor the RBLs was costing around $10m annually and the ATO recouped hardly anything from those who had breached the limits.
That's good recall Belli, can you remember how the min max age related drawdowns worked, it was designed to stop people just pulling their money out ad lib and then running out.
The 2007 changes worked on the fact if you drew it out, it was impossible to get it back in the tax free super system and people tended to draw the minimum anyway.
Thanks Belli, that's great, I have taken some screen shots of the relevant parts where the old and new schemes are compared, it really was ridiculously complex and stupid.My brain is too tired to bother even trying to remember.
If someone is sufficiently bored with life, please go though this and provide us lazy sods with a summary.
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