• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer

Neighborgoods

Get Outside and Enjoy Life

  • Home
  • About
  • Lifestyle
  • Health
  • Traveling
  • Finances
  • Activities
  • Community
  • Pets
  • Business
  • Blog
  • Contact

5 Benefits of Self-Managed Super Funds (SMSF)

July 23, 2021 by Carter Leave a Comment

If you’ve been contemplating taking direct charge of your retirement plans, opting for self-managed super funds (SMSF) is a practical solution if you want greater control of your retirement savings. As the name implies, a self-managed super fund is a pension plan that allows you to take direct charge over how your superannuation contribution is invested.

To set up an SMSF, you need to create a legal trust with other individuals or corporate trustees who will all be responsible for making investment decisions and ensuring the fund’s legal compliance. While an SMSF requires 100% commitment and understanding of investment, it offers several advantages. Here are the top five benefits of a self-managed super fund:

A broader range of investment options

The number one strength of an SMSF is that it provides you with complete investment control. Access to a wide range of investment options is the pathway to making smarter choices, a strength that you can leverage. Primarily, you can invest in virtually anything right from artwork and collectibles to listed shares and property, provided it adheres to regulations. A particular point of interest is the ease of buying an SMSF property as you can borrow to invest in these assets.

Enhanced flexibility and control of the fund

Would you like to be in a position to make the right adjustments regarding your portfolio? An SMSF allows you to practice those great investment strategies as you are responsible for decision-making as a trustee. You will also appreciate that you have greater control of the fund as the trustees can create rules to suit their needs and interests.

Better tax management

The flexible structure of an SMSF allows trustees to time their contributions and allocate earnings in ways that will minimize their overall tax. This is different from public pension funds that do not allow for these flexibilities as all members have to adhere to the set rules and deadlines. As an SMSF member, you will love the ease of making financial decisions that do not negatively affect your tax position.

Lower transaction costs

In most retail funds, you have to part with brokerage fees, capital gains tax, and buy/sell costs when moving from an accumulation phase to the pension phase. This will not be the case with an SMSF, as you do not have to sell your shares or assets when moving to the retirement phase. You will retain your investment and start withdrawing your balance as an income.

Ease in transferring wealth to the next generation

An SMSF is a smart way to secure your future while taking into account the next generation. The ease in controlling your estate plan is a foolproof way of ensuring the funds go to your dependents at the right time. You can structure these income streams and benefits in a tax-effective way, creating a better future for your loved ones.

Endnote

Self-managed super funds are getting popular by the day as more people realize their immense advantages. You can also make the smart decision and take direct charge of your pension to enjoy these benefits.

 

Filed Under: Finances

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

About

Neighborgoods is all about living a healthy and community based lifestyle. Staying active and being outdoors is what life is all about :) It may not be for everyone, but I believe that the more time we spend with others being active outdoors, the happier we are.

Newsletter

Let’s Connect

  • Facebook
  • Instagram
  • Twitter

Facebook

Neighborgoods

Featured Posts

What is magazine design? How does it impact your brand value?

What is magazine design? Magazine design is the process of creating the layout, graphics, and typography of a magazine. It involves using visual elements to communicate information, convey a … [Read More...] about What is magazine design? How does it impact your brand value?

Benefits Of Hiring A Professional Emergency Plumber

When a plumbing emergency strikes or you need gutters and downpipe repairs, it can be stressful and potentially costly. Whether it's a burst pipe, an overflowing toilet, or a leaking hot water system, … [Read More...] about Benefits Of Hiring A Professional Emergency Plumber

Footer

About

Neighborgoods is all about living a healthy and community based lifestyle. Staying active and being outdoors is what life is all about :) It may not be for everyone, but I believe that the more time we spend with others being active outdoors, the happier we are.

Latest Post

  • What is magazine design? How does it impact your brand value?
  • Benefits Of Hiring A Professional Emergency Plumber
  • How does technology inform and assist with the provision of healthcare?
  • 10 Easter Games to Entertain the Entire Family
  • The Best Outdoor Activities for Team Building

Facebook

Neighborgoods

Copyright © 2023 · Magazine Pro on Genesis Framework · WordPress · Log in