Should I move my shares into my super fund?
Q.
I am 57 years old and hoping that I have enough money in super
to retire in a few years time. I have a DIY super fund, which along
with most funds has reduced in value in recent times. I spoke to an
acquaintance about ways that I could boost the value of the fund. I
have a considerable amount of money invested outside the fund in
shares which have reduced in value since they were purchased. The
friend suggested that I could move those shares into the super
fund, in the expectation that the current depressed value of the
shares would recover over the next few years. Is this advice
correct, and if so, what are the advantages and disadvantages?
A.
The problem is capital gains tax. If you are happy with the
shares a better option may be to delay transferring them to your
fund until you retire. Then, provided you are aged less than 75,
and can pass a simple work test which involves working 40 hours in
30 consecutive days, you will be able to make a tax deductible
contribution to super to offset the CGT.
Each week financial advisor Noel Whittaker answers your
questions.
