It is an interesting fact that four Self Managed Superannuation Fund (SMSF) are set up every hour in Australia. The major reasons driving the increase in popularity of SMSF lies in the members having;
- Greater Control over their Super
- Greater flexibility in respect of the investments the fund can make
- Ability to maximise investment returns compared to industry funds and minimise tax
- The ability to reduce and minimise the fees and costs usually imposed upon superfunds
- Maximum flexibility in establishing and managing pensions, including account based, transition to retirement and term allocated pensions
- The ability to own business real property in your superannuation fund which can assist you and your business.
By setting up your own SMSF, you can control and decide upon how your retirement savings are invested and managed. With an SMSF you have other investment options not normally available through industry and institutional superannuation funds including the ability to buy residential and commercial properties, shares, bonds, precious metals and other exotic investments.
The flexibility of your SMSF allows you to invest in a wide range of asset classes gives you the ultimate in flexibility and allows you to identify and seize upon investment opportunities with the view of maximising your superfund's long term investment returns.
Another benefit of a SMSF is that you can have up to four members in the one fund which allows you to pool your resources and minimise the overall cost per member. As you control your SMSF you have direct control over your investments and have the ability to adapt quickly to any changes in the market or new opportunities.
Based on a 2009 Federal Government report into SMSF's it was found that over a three year period (2006-2008) outperformed APRA regulated funds measured at a whole of industry level. The same report also found that operating costs or fees attached to running a SMSF were also lower when compared to Industry and Retail funds.
Depending on your circumstances and the funds available for investment, a SMSF could be the perfect vehicle for you to manage your retirement savings and maximise its potential. If you would like to discuss whether a SMSF is best for you and your circumstances – please contact Jason Murray for a free initial meeting where we can consider your financial goals in greater detail.