Superannuation is one of the most tax-effective ways to invest for your
future. It is also one of the most misunderstood. Rather than thinking of
Superannuation as an Investment people should view it as a Tax Saving
These days virtually whatever you can invest in, in your own
name you can also invest in through Superannuation. The difference is that your
superannuation pays little or no tax.
The benefit of this cannot be over
Take for example investing $10,000 in shares in your own
name or in superannuation at age 30. By the time you are retired at say age 60
the amount you have available for your retirement assuming a return of say 12.0%
before tax would be approximately as follow: Invested in your name (after tax) -
Invested in Superannuation (after tax) - $304,318
though you are getting exactly the same percentage return in your own name
before tax you are far wealthier if you have invested through superannuation.