06.08.2013

What Benefits will you gain From A SMSF?

So what are the main benefits of Self-Management Super Fund? Well this is quite individual as everybody is slightly different but we have summarised the main benefits that individuals receive out of their super fund.

The first one being control – because you are the Trustee you ultimately have discretion on what you want to invest in and what you don’t want to invest in. You are only effectively bound by what legislation will allow you to invest in and what it won’t allow you to invest in.

Costs, now depending on the size of your fund it can actually be cost effective to start your own fund as opposed to having a retail fund. This is because the account keeping fees are fixed and typically a flat fee as opposed to a retail fund which is pre-dominantly percentage based.

Leverage, now since 2007 this has become a major benefit of Self-Managed Superannuation Funds. The reason being is now you can actually leverage or borrow within your superannuation fund to buy commercial or residential property. This is quite a development and it allows you to diversify your investments in what typically might have only being held in shares previously.

Estate Planning, now this is quite a complex area but Self-Managed Superannuation Funds are effectively a trust which means it can be a family wealth mechanism that can allow you to pass your wealth on through the generations in your family.

Insurance, because you are the Trustee you can choose from a wide range of insurance providers which means you can pick the insurance policy that has the features and benefits that suits your personal situation. This means it can be cost effective but also the most comprehensive policy of what you are looking to receive.

Now there are plenty more benefits available within a Self-Managed Superannuation Fund, the key is to understand what are you looking for?How does it related to your scenario? And What are the benefits you will receive from having your own superannuation fund.