Self-managed super funds for Australians; what you need to know

Self managed super funds
Self-managed super funds

Did you know that self-managed super funds account for as much as a third of all Australian superannuation assets? Now you do!

Self-managed superannuation is not the typical option and certainly isn’t for everyone, yet remarkably, they have secured a large portion of the market. Why do you ask? This is the the question of the day, but with the aim of discovering the reasons, we found quite a few advantages that interestingly prove why so many have decided to go the route of self-managed super funds.

The benefits of self-managed superannuation

Benefit #1: secure you family's wealth

This isn’t a solo mission, not only you will benefit from this type of investment, your entire family will reap the rewards. When considering estate planning, it’s actually tailored to include a flexible and family orientated approach. When a family accumulates assets, the rate of growth increases exponentially and thus leads to a very fruitful reward in the end that looks after the wealth of more than just one generation.

Benefit #2: Control your own investments 

Investments are a large part of what we strive to put our money into for the elusive “later”. However, they’re always being managed by a third party and we have very little control over them. It’s frustrating, but it is what it is. But with SMSF, the investor has the opportunity to be a part of modern investing and control their own investments. SMSF offers control to the person investing and offers flexible terms starting with a trust deed which is drawn up to meet your personal needs. With all this flexibility, planning an investment has never been able to provide more peace of mind than it does now. The administration can be overseen by a consultant of choice, which also affords the investors time to focus on other vital facets to the investment such as developing holistic strategies.

Benefit #3: Redirect accumulated wealth 

The set up of this fund does require costs. Doesn’t everything? Well yes, but can you always save whilst doing so? Not always. That’s the next benefit of SMSF when you invest more than $200,000, you will start improving the cost-effectiveness in comparison to the typical outsourced superannuation management. An increase in the fund balance leads to freeing up much larger portions of accumulated wealth. This wealth can then be redirected toward other major investments in our daily lives such as property, term deposits, and others.

Benefit #4: Diversify your investments

You have a choice! With typical superannuation funds, you don’t get as great an opportunity to have a diversified investment. With SMSF, you are able to choose from property and equities to offshore accounts. Self-managed super funds take the individual’s needs and put them first, enabling investments to be tailored to the choices of the client.

Benefit #5: Tax benefits

You will receive tax benefits with self-managed super funds. The tax laws in Australia state that SMSF attracts a lower tax liability. The accumulation stage of the investment attracts a maximum 10% tax and further to that, you can expect to pay no tax at all on capital gains during the pension stage.

Benefit #6: Receive payments from your fund

Generally, one can’t receive payments in the form of income from a superannuation fund, however with self-managed, you can. Australians can even operate right through the entire investment to the point of retirement. This helps majorly in terms of planning for the long-term and has helped many Aussies strategise financially for their future.

Benefit #7: Easy reporting solutions 

Reporting is a breeze. This fund is structured in such a way that the average Aussie can deal with it in a no mess no fuss manner. Obligations are far less strict and member reporting is tailored to suit the individual who is managing their investment themselves. All concessions applied by the Australian Tax Office directly assist in the process of self-managed funds.

Benefit #8: It's all in your hands

Build your own future, the way you want it to be simply by having all the control in your hands. All your savings are at the will of your own desires. Through technology, you are able to remain in the know about your investments at all times. As we know we are living in an era where instant gratification is kind of a big deal. Superannuation is no exception. You can now make the most out of your investment portfolio by keeping your finger on the pulse as well as driving it to it's destination.

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