I've been salary sacrificing a portion of my super for the last couple of years. Should I stop making these contributions and use the funds to invest in shares myself? Or can I assume I'm currently buying (through super) equities at a cheap rate, whose value will increase?
It's a big call to believe you can beat full-time professional fund managers by making investment decisions yourself. Analyse how your existing funds are performing in relation to their peers and to their benchmark. View the situation as a chance to buy quality assets at cheap prices.
I'm 56, single and have decided to retire. I have my own house, $300,000 in super, $300,000 in shares, a foreign pension, two rental properties and some cash, which generate annual income of $85,000. Can I keep my super account open and make contributions into it until
I turn 65?
Until you turn 75, you are eligible to make before tax and after tax contributions to super but contributions made after 65 are subject to a work test. The caps are $50,000 for concessional contributions for 2011-12, and $150,000 a year for non-concessional contributions, and $450,000 if you trigger the two-year bring forward rule. The concessional cap will be $25,000 for everyone from July 1. Transfer as many shares as possible into super. Seek advice about making deductible contributions to minimise capital gains tax on the transfer.
Noel Whittaker is a director of Whittaker Macnaught. Advice is general and readers should seek their own professional advice. Contact noel.whittaker@whittaker macnaught.com.au.
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