If you are looking to make the best investments for your retirement, it’s likely you already have access to either an industry superannuation fund or retail superannuation fund. However, another opportunity you may explore is getting a self-managed super fund (SMSF). 

By going for an SMSF, you will be able to enjoy greater control over your funds, which is something you may appreciate in the long run. 

But does it come with other benefits? Definitely! 

Here are 5 benefits of an SMSF:

1.  An SMSF gives you freedom in making decisions 

As mentioned above, a self-managed superannuation fund gives you control. This can enable you to set your financial goals for this fund without adding extra pressure or going beyond what you’re willing to give.

You may also enjoy the flexibility of deciding on your own investments and strategies to grow your SMSF.

You have the freedom to pick out investment choices like,

  • Direct shares,
  • Commercial and residential properties,
  • Overseas direct investments,
  • Alternative investments or term deposits

2. An SMSF may help you save on expenses and taxes

Some superannuation funds can be quite costly, but if you manage your own, you might save on expenses. 

For instance, all the resources are pooled together and every member is treated equally in public or industry super funds. In contrast, self-managed super funds involve strategic, individualised solutions to minimise your tax expenses. 

With an SMSF, you may be able to work with a pension as a regular income stream without having to worry about taxes. 

Plus, you may not have to worry about selling assets and the transition to retirement can be seamless!

3. An SMSF allows you to set aside more for your estate planning

Life can be unpredictable, and you may like to have money or investment assets you can leave for your dependents even after you are gone. If you’re with an SMSF, you may be able to do this with tax advantages.

If the superannuation assets are kept outside of your will, your dependents can receive them free of tax. Non-dependents may also receive them nearly tax-free. 

Simply put, this means that you can give more to the people that matter to you.

4. An SMSF opens up property investment opportunities

An SMSF may be able to provide you with the opportunity to buy business property for leasing and invest in property.

Through the combined assets in an SMSF, an investment property can be purchased, and it can serve as a dividend payment for retirement savings. 

However, it’s important to note that this step is a long-term investment, and it may come with some transaction costs.

5. An SMSF lets you combine your resources

In Australia, an SMSF is open for up to four members, who must be trustees, or directors, or corporate trustees (if you’ve appointed one). This usually includes business partners and family members, allowing all members to enjoy the benefits of combining everyone’s resources. 

Through asset consolidation, you can open more doors to better opportunities for retirement and estate planning.

Plan for retirement with an SMSF

There are various options available for people who want to be more prepared for retirement. A self-managed super fund can be an excellent way to create a secure financial future, but only if you do it right. 

Consider getting superannuation and SMSF advice from a qualified and experienced personal financial advisor, who can help you make the best financial decisions tailored to your situation.

For the best self-managed superannuation advice, work with Poole Advisory today. 

Our firm of reputable financial advisors will work with you through a collaborative approach to deliver tailored and personal guidance on investments and wealth management to reach your financial goals. 

Book an appointment today to learn more!


Compliance Disclaimer:

This information contains general advice only, that is, advice which does not take into account your needs, objectives, or financial situation. You need to consider the appropriateness of that general advice in light of your personal circumstances before acting on the advice. You should obtain and consider the Product Disclosure Statement for any product discussed before making a decision to acquire that product. You should obtain financial or credit advice that addresses your specific needs and situation before making investment or borrowing decisions. Taxation information is based on our interpretation of the relevant laws as at 1 July 2018. While every care has been taken in the preparation of this information, Prosperitas Partners Pty Ltd does not guarantee the accuracy or completeness of the information. The case studies are hypothetical, for illustration purposes only and are not based on actual returns

Poole Advisory Pty Ltd ABN 15 642 040 604 is a Corporate Authorised Representative (No. 001282603) of Prosperitas Partners Pty Ltd ABN 30 662 654 453 AFSL 544 917

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