A Self Managed Super Fund – it’s a powerful retirement vehicle
Do you know the benefits of a Self Managed Super Fund?
Here are 7 reasons why you should consider a Self Managed Super Fund
Fuelled by a desire for greater control over investments, there are now more than 400,000 Self Managed Super Funds in Australia. With approximate assets of $350 billion, and rising fast.
Why are SMSF growing in popularity? Here are 7 reasons;
1. More investment choice
Self-managed superannuation funds provide a wider investment choice. Plus, trustees have discretion to choose investments, such as;
- direct shares,
- direct property,
- hedge funds.
A motivator for small business owners is the ability to lease property used by the business, from their SMSF.
2. Control and flexibility
Another benefit is the control and flexibility trustees have over the tax position of the fund. Strategic investment planning means your SMSF tax can be significantly reduced, even eliminated, particularly for those in retirement.
3. Family rewards
Up to four family members can participate in the fund and reap the rewards.
REMEMBER;
- SMSF inherent excellent estate planning benefits,
- your will does not necessarily control your superannuation benefits.
The key here is a strategy to accomplish exactly what you are after, with exceptional tax efficiency. This includes being able to leave tax advantaged (sometimes tax free) income streams to dependant beneficiaries with control around when they receive a lump sum. This enables you to effectively look after child beneficiaries in a way no other structure can match.
Further to this, SMSFs can make binding nominations that do not lapse.
4. A SMSF can borrow money
New rules introduced allow superannuation funds to borrow money under particular arrangements. This now makes it easier for trustees to acquire direct property in their SMSF. This is because property is usually a big ticket item and generally requires an element of borrowing.
5. Low management cost
For many the cost of running a SMSF is significantly lower than that of an alternative retail, industry or other commercial super fund. The main cost for a SMSF is only the completion of the annual administration requirements of the fund.
6. Attractive pension planning options
If you are nearing the pension phase, the SMSF allows excellent pension planning with the transition from accumulation into flexible income streams. As with all super funds, the ability to take tax free income streams on retirement is a big incentive to stay within the superannuation environment.
7. Lighten your burden
By using a specialist administration service, like CVW Accounting, your burden is reduced. That’s because we can manage fund investments and documents all while keeping you informed.
A SMSF gives you control over your superannuation investments.
Establish your own SMSF today.
Contact us at CVW Accounting to arrange a meeting to discuss whether this is a viable option for you.
For more information about SMSFs visit;
- Superannuation Advice
- Be wary of Excess Super Contributions tax
- Buying collectibles in your SMSF
- Is your Superannuation Fund working for you?
This blog was first written and published in February 2012. It has been reviewed and updated in May 2019 and June 2021.
This entry was posted in Advice, Self Managed Superannuation Fund, SMSF, Superannuation and tagged advice, CVW Accounting, perth accountant, self-managed superannuation, SMSF, superannuation .
ABOUT US
CVW Accounting is a reasonable, highly experienced accounting firm, based in East Perth. We work with small to medium businesses to maximise growth and profit.
More about CVW Accounting
OUR SERVICES
We agree on your accounting fee before we start work. Let CVW Accounting keep you on top of all your financial reporting, obligations and taxation requirements.
More about CVW Accounting
Latest News
The ATO has started issuing director penalty notice letters to Directors in order to inform them of potential personal liability for unpaid company taxes. If you have received a letter, CVW Accounting advise you contact your accountant. Why have… Continue reading →
More about CVW Accounting