Dev Raga Personal Finance 441 superannuation part 1: accumulation phase
Oct 22, 2024
Scott Taylor, Director of Everest Wealth, shares insightful strategies for building wealth through superannuation. He explains the purpose of super and dives into various types of contributions, including limits and tax implications. Listeners learn about the First Home Super Saver scheme and how to navigate retail versus industry funds. Scott addresses crucial topics like conditions for early release, excess contributions tax, and the benefits of planning for retirement as a young professional. It's a treasure trove of financial wisdom!
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Superannuation in Australia
- Superannuation is a system mandatory for employers to contribute a portion of employees' salaries for retirement.
- It's unique to Australia and has existed in its mandatory form since 1992.
Superannuation's Purpose
- The main aim of superannuation is to reduce the burden on the age pension.
- The Australian government wants people to be self-funded in retirement.
Super Contribution Prioritization
- Prioritize maximizing concessional (before-tax) contributions to superannuation first.
- Then, consider non-concessional (after-tax) contributions.