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.