Reading about financial planning techniques and strategies is great and can provide you with some great insight as to what is available and how these methods work. However, to see it in action helps you to understand the advantages and effects these strategies can have in real life. Please click on the links below to see what significant impact, if done well, these techniques can have.

The following demonstrates the tax advantages of doing this:

Careful consideration needs to be taken when contributing extra salary to superannuation as many release conditions exist and depending on your age, these funds may not be accessible until she is 65. Jane has determined that she is able to live on $45,000 and therefore this strategy is viable. Consultation with your financial planner regarding your personal situation is always advised when considering this strategy

Back to: Financial Planning / Power Strategy #3 – Salary Sacrifice