Why is Superannuation a Good Investment?
What makes super so special is the way in which investment returns are taxed. Unlike other comparable investments, which are typically taxed under marginal income tax rates (as high as 45%) the investment returns of your super fund are generally taxed at only 15%.
This low rate of tax means your super can potentially grow in value at a faster rate than other investments invested in the same assets.
When you contribute to super, your money is pooled together with those of other fund members and invested by professional fund managers.
Typically, super funds like Club Plus Super, have a number of different investment options, each with its own investment strategy. Depending on what options you choose, your money can be invested in Australian and international assets including shares, property, fixed interest and cash. They can be invested primarily in a single asset class, say, Australian shares, or they can be invested in a diversified mix of asset classes, for example, the MySuper / balanced option which contains a range of different asset classes including shares, property and fixed interest.
Club Plus Super also gives you the ability to self-manage some of your own super or pension investments through the Club Plus Super Direct Investment Option (DIO).
At Club Plus Super, you can choose your investment option(s). This is an important exercise and you should seek advice if unsure.