Comments on: Australians Abandon Share Market For Super Funds http://www.dailyreckoning.com.au/super-funds/2007/05/18/ An independent perspective on the Australian and global investment markets Sat, 21 Nov 2009 10:39:45 -0600 http://wordpress.org/?v=2.8 hourly 1 By: Matt Hern http://www.dailyreckoning.com.au/super-funds/2007/05/18/comment-page-1/#comment-3376 Matt Hern Tue, 25 Sep 2007 05:29:01 +0000 http://www.dailyreckoning.com.au/super-funds/2007/05/18/#comment-3376 In the context of the statistics quoted by The Age it is important to remember a couple of facts about superannuation. Firstly, superannuation is just a legal structure with its own tax rate. With limited exceptions you can hold the same investment assets inside superannuation as you can outside of superannuation. So you can invest through super and manage your own money as suggested in the blog post. Secondly, a major reason you choose to manage your money within the superannuation structure is the generous tax structure. So, people putting money into superannuation does not guarantee any extra money into managed funds. Those inclined to invest directly outside of superannuation may be inclined to do exactly the same within a full featured superannuation account (or a self managed super fund.) Matt In the context of the statistics quoted by The Age it is important to remember a couple of facts about superannuation.

Firstly, superannuation is just a legal structure with its own tax rate. With limited exceptions you can hold the same investment assets inside superannuation as you can outside of superannuation. So you can invest through super and manage your own money as suggested in the blog post.

Secondly, a major reason you choose to manage your money within the superannuation structure is the generous tax structure.

So, people putting money into superannuation does not guarantee any extra money into managed funds.
Those inclined to invest directly outside of superannuation may be inclined to do exactly the same within a full featured superannuation account (or a self managed super fund.)

Matt

]]> By: kage http://www.dailyreckoning.com.au/super-funds/2007/05/18/comment-page-1/#comment-2160 kage Sat, 19 May 2007 00:37:20 +0000 http://www.dailyreckoning.com.au/super-funds/2007/05/18/#comment-2160 You forgot greedy. Stupid, lazy and greedy. The government mandated jobs scheme for fund managers is just another rort. Underperformance plus a lot of boomers wanting their super all at once equals liquidation, and a lid on the share market. New entrants to the super funds will decline comparatively, and so new money in will be less than old money out. My legally coerced but happily tax effective contribution is in the cash option at present. (they don't have a gold option - but I keep asking) You forgot greedy. Stupid, lazy and greedy. The government mandated jobs scheme for fund managers is just another rort. Underperformance plus a lot of boomers wanting their super all at once equals liquidation, and a lid on the share market. New entrants to the super funds will decline comparatively, and so new money in will be less than old money out. My legally coerced but happily tax effective contribution is in the cash option at present. (they don't have a gold option - but I keep asking)

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