In Australia, Self Managed Super Funds represent a considerable percentage of investment, with about 4,00,000 SMSFs representing nearly 7,50,000 members.

But it comes with its own set of complexities which is why SMSFs are not everyone’s cup of tea.

Before investing in one, it is worth considering:

» Is it specifically for retirement savings?
» Do you have the expertise to run an SMSF?
» Will the benefits be worth the risk and cost?
» How will it affect your current financial situation?

Here is why SMSFs are a great investment option for retirement planning:

Control
SMSFs give you complete control over your investment – Asset allocation, insurance cover, retirement planning, tax strategies, etc.

Flexibility
SMSFs come with great flexibility over where you want your super to be invested. You can set your choice of combination of assets – fixed investments, real estate, liquid assets and shares.

But before deciding your portfolio, you must consider your risk tolerance, investment objective and time horizon.

Tax
SMSF holders can furnish their tax returns later than other types of fund holders. This way they can invest a bigger portion of funds in SMSF.

Insurance
Many insurance cover options available including life insurance.

As rightly said, with greater control comes greater responsibility. But the returns make it all worth the efforts. Financial advice & support from experts can make it easier.

Want to know more about SMSF? Contact our experts on 1300 707 326 or [email protected] today.