Basic Superannuation Question, page-3

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19/07/17

20:38

Post #: 25966995
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Originally posted by Mongrel ↑

Glad you're seeing a pro. You really haven't given enough information: where will your income be sourced from (a super fund?). Are you single/married/kids? How much do you have in your super fund? (you + wife = $3.2M max tax free, the remainder has to be left in an accumulation fund taxed at 15%). Are your investment properties outside super? Are you relying on investment property income or capital gains to finance your retirement? You say "redraw money" - do you mean draw down on the mortgage? Bad idea. If from rental income - OK, bit if its outside super that draw down will be taxed at the marginal rate.

There are many things you could do.

The most flexibility is possibly a transition to retirement income scheme, even though they are not as attractive as they used to be (before 30/6/17 super earnings in a TRIS were tax free while you could earn money and put it into your super at the same time. Now earnings are taxed at 15%,).

You could sell one or both of the investment properties, set up a family trust, and invest in that with the funds to allow the flexibility of distributing trust earnings to maximize use of tax-free income hurdle with you, your wife, and your kids (if over 18).

If your super fund has not topped out, sell a property and use the 3 year bring forward rule to make nonconcessional contributions into your (and your wife's?) super fund(s).

It goes on and on and there is no one simple single answer. Depends very much on your aims, amounts available, etc.

See a pro!

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Wow thanks for the answer. The info I provided was about all there was. I'm a bit embarrassed as I don't really have that much cash. Only 250 k in the super fund. Paid off investment property and one paying off. Paid off house. Wife with even less in super. 2 kids. Plan on retiring and living off rental returns, whatever I can save between now and 55.

Simply, should I pay off the investment property with my extra cash or put it into super?

cheers.
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