In Australia, a number of Australians are taking control of their superannuation. A Self Managed Super Fund (SMSF) provides a great vehicle to help you build your wealth and prepare for retirement.
Some of the benefits of an SMSF include:
Investment Choice
An SMSF provides a wide range of investment choices that may not be available in a retail superannuation fund including direct residential property, business property and collectables to name a few.
Control
As trustees of an SMSF you have control over how your retirement savings are invested. As trustees of an SMSF you will need to develop an investment strategy and continually review the investment strategy.
Property
As an SMSF member you are able to invest in direct residential property including borrowing to finance the investment property. Care must be taken with this strategy as you or a related party are not permitted to live in the investment property.
Business Property
As a small business owner, you are able to purchase your business property in your SMSF and pay rent from your business to your SMSF, helping you build your retirement savings.
Tax Planning
Superannuation is a very tax effective investment with a maximum tax rate of 15%. Having control over your investments in an SMSF allows you to have more control over when your investments are bought and sold, allowing you to implement tax planning strategies.
Cost
To run an SMSF you must lodge an annual tax return, have the fund audited and pay the Australian Taxation Office (ATO) fees. Often these fees are fixed and as your combined superannuation balance increases this can reduce the average administration cost of running your SMSF, providing a cost saving.
Pool Family Superannuation Together
An SMSF allows you to combine your superannuation assets with up to 3 other members. This allows you to pool your superannuation benefits as a family. This can open up opportunities to invest in larger investments such as property that may not have been available if invested individually.
Estate Planning
As trustees of an SMSF, you have more control over how you transfer your wealth to your family, allowing you to control how your beneficiaries receive your superannuation benefits upon death.
Is an SMSF suitable for you?
While an SMSF can be an excellent vehicle to help you grow and manage your superannuation, there are also additional responsibilities and risks to be considered and an SMSF is not for everyone. We recommend you speak to an SMSF advisor before making any decisions.
Contact Us
If you’d like to have a chat with our SMSF advisor, please give us a call on (03) 6344 3899 or send us a message below:
Disclaimer
The information contained in this article is of a general nature only and does not take into account your particular objectives, financial situation or needs.
Accordingly, the information should not be used, relied upon or treated as a substitute for specific financial advice.
While all care has been taken in the preparation of this material, no warranty is given in respect of the information provided and accordingly neither BND Financial Pty. Ltd. (Trading as ‘BND Financial Services’) nor its employees or agents shall be liable on any ground whatsoever with respect to decisions or actions taken as a result of you acting upon such information.
