What are the tax ramifications?
Q.
We have substantial money sitting in non-preserved
superannuation. I am over 55 years and still working full-time and
would like to withdraw most of this to invest in property, leaving
the preserved for retirement. Is this possible and what are the tax
ramifications?
A.
You would need to talk to an adviser to establish what tax would
be payable, if any, on any amount withdrawn. It is my strong belief
that in most cases you are better to keep as much in super as
possible, and in need borrow to invest in property. If you own your
own home and wish to adopt this strategy, you could consider taking
out a home equity loan for the deposit on the investment
property.
Each week financial advisor Noel Whittaker answers your
questions.
