Self-Managed Super Funds: What are the Benefits?

With an increasingly aging population there is going to be continued pressure to be able to fund your own retirement. The sooner you put into place practises to improve your worth when you retire, the more time you will have to get the maximum value from your retirement planning efforts.

At the end of the day we all desire a fulfilling retirement. The question is how is this best achieved? One popular option is the use of a Self-Managed Super Fund (SMSF).

While not everyone will want to set up one of these funds, it may be worth your while to take a look at some of the many benefits they offer, including:

1. Control: The assets of the fund are controlled by the trustees, who are also the members. These trustees are responsible for all decisions of the fund.

2. Family: You can involve up to four members of your family can participate in the fund and reap the rewards. Note: Whilst members are usually family members they can also be unrelated parties.

3. Security: An SMSF offers the most flexible options for taking your benefits in retirement, whether as a lump sum or as a pension.

4. Choice: The trustees have absolute discretion regarding the choice and mode of investment. However, you need to manage your fund’s investments in the best interests of its members and in accordance with the law. Investments must be separate from the personal and business affairs of fund members, including yourself.

5. Taxation: An SMSF enjoys the lowest rate of tax of any entity structure in Australia. The fund pays a maximum 15 percent tax rate which may be reduced by tax credits that are available.

6. Fees: The SMSF fee structure may deliver substantial savings when compared with other retail superannuation funds.

7. Flexibility: Trustees have the flexibility to make decisions with respect to changing market movements and options for retirement income streams.

8. Protection: The fund assets of a member are generally protected from creditors in the event of insolvency.

The sooner you start your journey towards retirement wealth the easier it generally is. So why not start today?

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