Term deposits offer no capital growth and interest income is taxed, which could reduce your overall return. In contrast, growth investments (like shares and property) within superannuation have the potential to produce a capital gain in the long term.

Historically, the long-term returns from cash are much lower than the long-term returns from shares and property. Therefore, it is unlikely that cash investments alone will achieve the required nest egg.

However it is possible to earn a high rate of interest income if deposits are kept with non-banks. One such investment is Mezzanine Funding.

Note that it is not UC Services preferred method, however to inform trustees that such products are available we are making available a power point presentation of two slides.

Click here to download the slide show. Click anywhere on the screen to change slides.

Due to timing issue, it is possible to legally reduce your income tax rate from 48.5% to only 7.5% if your DIY Super Fund invests in a 4.5% term deposit. Most banks currently offer this rate on fixed deposits.

Click here to download the slide show. The power point presentation has two slides; click anywhere on the screen to change slides.