What is a Self-Managed Superannuation Fund?

April 12, 2018 2:07 am Published by


 

What is a Self-Managed Superannuation Fund?

 

One of the best means for saving for retirement is a Self-Managed Superannuation Fund (SMSF). A SMSF allows you to guide your own investment strategy, minimize administration costs and reduce tax while obtaining tax benefits. A Self-Managed Super Fund is different to other types of funds in that the members of a SMSF are also the trustees. This means that members can run it for their own benefit. SMSF’s are now one of the most popular choices within the Superannuation Industry in Australia as they have far better performance results than retail and industry funds.

 

Benefits

 

There are many great benefits to switching to a SMSF. A major factor for people looking to start a SMSF is the ability to control their superannuation interests. SMSF’s offer a range of additional investment opportunities such as direct shares, high-yielding cash accounts, term deposits and income investments. SFSM members will have greater flexibility of their investments and can decide when to acquire or sell them. Funds within a SFSM can also be pooled with up to 3 other family members, which unlocks new investment opportunities and provides flexibility when going into retirement. Furthermore, having control and flexibility over your investment decisions provides you with various tax advantages, meaning you can minimize a capital gains tax liability. In many cases, there is a real possibility of lower running costs and greater risk management.

 

Setting up a fund

 

When setting up a SMSF you need ensure it is eligible for tax concessions and easy to manage. To do this, you’ll need to find a SMSF expert that is a member of the SMSF Association Australia to help with the initial set up and to walk you through the ATO requirements. The team at Sedley Koschel Superannuation have years of experience with the set up and ongoing management of SMSFs. Our superannuation admin team will be able to assist with all your paperwork and setup your SMSF quickly and easily. We will guide you through the entire process and continue to provide ongoing support and assistance.

 

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This post was written by Terrena Peade

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