A self managed superannuation fund (SMSF) is a super fund established for 1-4 people with the fund being administered by trustees who are also the members. This type of fund generally provides flexibility, greater control and choice of investments but doesn’t suit everyone. To help you understand whether an SMSF may be suitable for you an outline is set out below.
Self-managed super funds are now the largest and fastest growing segment of the super industry.
It’s easy to understand why when you look at the advantages of having a SMSF, including:
- A wider choice of assets in which to invest, including direct shares and property
- Greater control over your investments and the timing of taxable events
- Can be more transparent and tax effective
- For larger account balances, SMSFs can be cheaper to run
However managing a SMSF isn’t as easy as you may think. Managing your own fund and getting it right is very important. There are many rules and regulations in the various laws that govern super that are designed to protect your retirement income. You need to adhere to the rules and know that you are ultimately responsible for the running of the fund.
SMSFs are complex tax structures and require a serious commitment to manage them effectively. Your Bernie Lewis financial adviser can assist you to arrange and manage your SMSF.