Of course, this illustrates the key components of where to invest from a tax perspective and for the current benefits but the future also holds some important factors.

For one, the most prevalent is that when you retire from your RA, one has access to only one third of the capital with this amount subject to tax (subject to certain tax free amounts). The balance of the capital will aim to provide you with an income that will be regarded as gross income and taxed accordingly. When we compare this to the collective investment scheme, the amounts are fully liquid and withdrawals made from these are treated as capital withdrawals and therefore not regarded as gross income.

In short, what this illustrates is that a person?s individual circumstance will determine their preferred investment vehicle for tax purposes. What?s more, it may leave one with more questions than answers as well as require numerous permutations on current and future tax implications.

Investing for your future should encompass tax considerations but allow for a far more holistic and comprehensive approach. Engaging with a Certified Financial Planner will allow you to explore all the factors and empower you to make an informed decision.

acsis Limited is an authorised financial services provider. The response to the question covers some of the issues in a general and factual manner and does not constitute advice. It is important to consult with a financial planner who, after an analysis of the individuals? personal needs, goals and circumstances, will be able to provide comprehensive and appropriate advice.