Wealth Connexion explains what a self-managed super fund is, why you need one, and how a SMSF specialist advisor can help.
Self-managed super funds are a way of saving for retirement that allows for greater control over your assets and investment decisions. An SMSF specialist advisor assists you in this process, acting as a guide or helping hand, with their wealth of knowledge on SMSF.
Why is it called a Self-Managed Superfund?
A self-managed super fund (SMSF) is a privately run super fund that you manage yourself or your advisor manages with you, for example, an SMSF specialist advisor. An SMSF is different from industry and retail superfunds, as these funds are often run by large super providers across hundreds if not thousands of members, whereas an SMSF is run solely by you and your trustees. This is why hiring an SMSF specialist advisor in Brisbane, such as Wealth Connexion, might be the right decision for you, ensuring you are not alone in this process.
An SMSF can have up to four members, often being employees, friends, or family. If you are a member of an SMSF you either become a trustee of the fund, or you set up a corporate company as the trustee. In either instance, you are accountable for the fund.
You are essentially making all the decisions about where your money is to be placed, regarding investments and insurance. Because of this added level of responsibility, working with an SMSF specialist advisor might be the best way to ensure all decisions regarding your superfund are in your and your members’ best interests.
Benefits of Having a Self-Managed Super Fund:
Investment Choice
Self-managed super funds (SMSFs) offer a wider range of investment opportunities compared to other superannuation funds. While there are a few exemptions, an SMSF can invest in nearly anything, as long as it adheres to the sole purpose test and regulations.
Flexibility and Control
SMSF offers a greater level of flexibility than other superannuation funds. As the members of the SMSF are also trustees, the rules surrounding the SMSF can be tailored to suit their needs and circumstances. With this level of flexibility, you can make timely changes to your portfolio following market changes or taking sudden investment opportunities.
Effective Tax Management
Tax rates for both SMSF and other superannuation funds are the same. However, through an SMSF, implementing tax strategies that benefit you and your situation are sometimes easier.
Accountability
You will be more aware of how and where your super money is being invested and the performance of those investments because you are both a member and trustee of your fund.
While there are many benefits to having an SMSF it requires a great deal of time and effort, you should understand and be entirely committed to running your SMSF before acting. With a SMSF specialist advisor you will be relieved of some of the stress that comes along with this added level of accountability regarding your super.
