What is a Self Managed Super Fund?
A Self Managed Super Fund is simply a way of saving for retirement that puts you in the driver’s seat.
Self-managing your super is all about achieving a higher balance at retirement while sticking to the rules and restrictions that apply to SMSFs.
A self managed super fund will give you the ability to control and choose your fund’s assets such as property, shares and diversified managed funds.
Your fund can have up to four members who become trustees and are equally responsible for the fund.
Is a Self Managed Super Fund right for you?
Taking charge of your superannuation is a major financial decision. SMSFs aren’t right for everyone and it’s best to speak with a qualiﬁed, licensed professional if considering a self managed super fund.
Some of the things to consider include;
- How will a self managed super fund benefit you?
- Do you have the time and skills needed to manage your own super fund or do you have trusted, qualified professionals to assist you with understanding the legal requirements of an SMSF?
- Is it cost-effective?
- An SMSF gives you direct control and understanding of where your superannuation is invested. You decide what assets to invest in and what will benefit the members of your fund. SMSFs can invest in a wide range of assets including property, shares, collectibles and more.
- You can pool the super balances of up to four members
- Estate planning flexibility
- Concessional tax rates
- Strategies that allow business owners to hold commercial premises in super
- Time and skill- setting up and running a compliant fund will require you to take an active interest in your superannuation. Seeking help from an accountant, financial planners, lawyer and SMSF administration specialists can alleviate this.
- You, as trustee are fully responsible for the fund and ensuring it is compliant
- A self managed super fund is generally not the most cost-effective super option for those with lower balances. Generally, the greater the balance of your fund the more cost-effective an SMSF can be. Before setting up an SMSF, always discuss with a qualified financial adviser to find out what is best for your personal financial situation.