AFR Smart Investor --- Page: 98 : November 2007 Original article by Daryl Dixon
LexisNexis Summary
There is flexibility in do-it-yourself (DIY) superannuation funds in Australia. This flexibility gives the trustees of DIY super funds the chance to maximise wealth as they approach retirement. The tax benefits in the pension phase of DIY super funds make such funds ideal for family retirement investments. A DIY super fund member should start a super pension at age 55 while still working. This is the age at which one can start a transition-to-retirement allocated pension (TRAP). There are great tax savings in the TRAP and no-one who is eligible should miss out. It is possible to work, earn a good salary, salary-sacrifice all of the salary into super and live off the TRAP. This builds wealth while little tax is paid.
