Thursday 17 May 2012
$ Million Advantage

CONSIDER two investors, Investor A and Investor B. They both work in the same field, are 35 years of age, and earn $100,000 per annum. Their salary rises 3% pa each year for the next 35 years and they retire at age 65. They currently have $150,000 invested in Super.  Investor A wants to take control of his Super and follows the SMSF Step by Step Plan as detailed below.  Investor B does not and his Super is invested in a Superfund chosen by his employer.  Lets see what Super they end up with:

 
  Investor A Investor B
Establish a SMSF Yes No
Reduce fees Yes ($699 pa increasing with inflation) No (1.1% pa fee)
Maximise Returns   Yes (7% per annum)   Yes (7% per annum)   
Salary Sacrifice Yes ($5,000 pa) No
Commence Pension   Yes at age 60  No  
End Super Benefit               $2.633 million $1.600 million               

 

Amazingly Investor A ends up with an additional $1 million in Super in Retirement simply by establishing his own SMSF and taking an active interest in his Super.  This is the "Million Dollar Advantage".  Whatever the savings, the benefits of establishing a SMSF and implementing the strategies outlined in this section of the website can be significant, enabling you to enjoy a better retirement than would otherwise be available to you.  

 

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