Self Managed Superannuation Funds
Added on by Etairos Accounting
In today’s economic climate, planning for the future is more important than ever.
Australia's population is ageing and we are living longer and while this has many obvious benefits it also brings many challenges: practical investment choices and forward-thinking to support income into older age among them. This development has bought attention to the increasing popularity of Self-Managed Superannuation Funds (SMSFs) as an alternative to retail or industry funds.
There are many reasons why SMSFs are becoming so popular a few which include:
The sense of empowerment Self-Managed Superannuation Funds offer. Being in control of your own retirement fund includes a multitude of positive benefits. It offers flexibility on investment choice particularly the ability to make direct investment in property and the ability to borrow for asset purchases.
For small business owners an SMSF allows you to own commercial property in super, occupy it as your place of business, and turn your rent into income for your superannuation. This provides the added benefit of knowing you'll always have an excellent tenant!
Depending on the funds size, self-managed superannuation has the potential to be very cost-effective. Management costs, such as accounting fees of SMSFs don’t necessarily increase with the size of the fund, whereas management cost of most retail and industry funds very often do scale based on a percentage of the fund's balance.
While SMSFs provide an important and flexible way for saving for your retirement, it is incredibly important they are set up properly and are compliant. The ATO suggests you consider professional advice when setting up and running an SMSF. Factors such as the the structure of your fund and ensuring ease of administration are just two examples of why getting expert assistance is beneficial to maximising the interests of the fund members and ensuring compliance with the laws that govern SMSFs.
If you would like assistance or advice about the set up of your SMSF, contact Etairos for a free consultation on 1300 55 22 30 and ask Kylie to make an appointment for you.
