Disadvantages Of Salary Sacrificing

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Register to read the introduction… This means they are accumulating more super to fund your retirement.

By putting some of your pre-tax income into your super, you avoid paying tax on this money at your marginal rate. However it is taxed at 15% (contributions tax) which is lower than the marginal rate of those earning above $35,000. It generally means more will be going into your super rather than you trying to contribute from your net (after-tax) income. And salary sacrificing has the effect of lowering your effective income and your overall tax burden.

Also by putting $10,000 into your superannuation every year, you will have more money in your fund when you retire at the age of 65.


· You can reduce your taxable income. Instead of paying tax on your income at your marginal tax rate, you are paying a maximum of 15% on contributions to your super.
· By reducing your taxable income, you may also become eligible for the Government Co-contribution.
· You are giving your super a boost and this will provide for a more comfortable lifestyle at
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Recommendation 5


Since you have already invested $25,000 portfolio of good quality shares and as a shareholder you have become a partial owner of the company and therefore benefit from the profit and capital growth the company achieves. Investment returns are paid in the form of dividends (a distribution of the companies’ profit) and capital growth (reflecting the increased value of the company over time).The upside of growth and profits comes with the risks associated with owning any business, cost increases, regulation changes and increases in competitor presence.

These are few advantages of investing in shares,

- Inflation rate is higher than commercial banks interest rate but lower than equity price appreciation.
- You are protected from the eyes of the public. Nobody knows your worth except you. In other investments, people can easily look at the assets of the business or your property (real estate) and come up with approximate worth of it.
- The rate of growth is far beyond the bank interest

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