Why have a Self Managed Superannuation Fund?
Over the past three decades, Australian’s have been increasingly unhappy with disappointing superannuation returns.
They have been paying fees and associated expenses to have their money invested only to get less return than they had expected. Many of these Australians felt the need to have more control over where their money was being invested and what kind of return they received which led to the creation of the Self-Managed Superannuation Fund.
Self-Managed Superannuation Funds are increasing in popularity as more Australians want to take control of their investments. There are 616,400 SMSFs with 1,148,481 members (SMSF ATO March 2024 quarterly statistical report).
For many Australians, establishing their own SMSF offers five major advantages.
- Investment control
- Effective tax management
- Greater investment flexibility
- Capacity to pool your super with your spouse/family or up to five other individuals
- Estate planning flexibility
The main two reasons so many Australians have chosen an SMSF is because they want to control where their Super is invested, and secondly to save $$$$.
CONTROL
As a trustee of a Self-Managed Super Fund, you control your investment choices, with options such as:
- Shares listed on the ASX and/or overseas listed companies
- Direct property, including residential, commercial or industrial property
- Bank term deposits and cash management accounts
- Purchase of business freehold property
- Investment flexibility
Save $$$$
Most of the costs associated with running an SMSF such as accounting, administration, and compliance costs are flat dollar amounts. You can also combine your superannuation with others to enjoy cost savings.
The cost of an SMSF is usually one flat fee irrespective of the size or how many members of the fund. It is quite common to combine your super with other family members to enjoy these economies of scale. Whether an SMSF is more cost effective depends on your superannuation balance and how much of the work you do yourself (investment decisions).
For more information about our services and how we can assist you and your family, please email our office on admin@abcfinancial.com.au or call us directly on 07 32523955.