A strategy to contribute to super can help your retirement
Financial Planner Luke Smith joined 2CC Talking Canberra 1206AM in The Money Show which aired on Friday 29 January 2021. This week’s topic: Contributing to superannuation – Part 2.
Luke takes a look at ways people can contribute to super and in this episode he takes a deep dive into non-concessional contributions and the $1.6 million contributions cap. Luke and Leon however start the show by talking about the Australian Open, it’s just around the corner and most of the players have been let of out of hotel quarantine. Some of them haven’t been very kind about being locked up in a hotel for 14 days, but there’s no special rules for tennis players.
Key highlights include:
- Retirement sneaks up on you, the sooner you start, the more time on your side you have.
- So what are non-concessional contributions to superannuation?
- You might have money for a non-concessional contribution by saving it, the sale of an asset, inheritance, or a lotto win.
- Because you don’t claim a tax deduction, you can put in $100,000 per year (not $25,000). You can also add $300,000 all at once, if you’re under 65, but time limits apply on when you can next make a non-concessional contribution.
- People also need to be mindful of the transfer balance cap which applies to your super balance.
- Can I make a non concessional-contribution to super if you’re 65? Yes you can, if you meet the work test.
- Where else can you use this contribution type to set yourself up for a better retirement? Consider your spouse!
- The facts about the $1.6 million contribution cap – it doesn’t mean you can’t have more than that in super, it’s just the amount your can enjoy as tax free earnings in your retirement.
- What are some key strategies you might consider around non-concessional contributions and the contribution cap?
- A free appointment offer to talk about your own financial planning goals. Everyone has different goals and financial planning advice can help you achieve them more effectively, especially when you link different strategies.
Listen to the Podcast right now
Also available on Apple Podcasts and Spotify ‘The Strategy Stacker – Luke Talks Money’
Do you need advice on contributing to your own super?
Luke as a Financial Planner can help you set up a financial planning strategy to help you achieve your personal financial goals. Simple super isn’t very simple, but the good news is you can make an appointment to speak with Luke about your superannuation and retirement strategy.
Envision 2CC offer: Your first appointment is at our cost. Make an appointment to confidentially discuss your own investment, super or retirement goals. Call Envision Financial Services on 6260 4749. You can also use our contact us form to make an appointment for a confidential discussion about your situation.
Luke will return to talk about financial planning on 2CC next Friday. You can also catch up with The Strategy Stacker – Luke Talks Money podcast. We look forward to your company again.