Setting up a SMSF can be beneficial in a number of ways. One of the main benefits of an SMSF is you control your assets and can self-direct where you invest.
For example you can invest directly in:
- Fixed interest
- Term deposits
- Residential and commercial property
Having greater investment flexibility allows you to adjust your investment portfolio to meet changing market conditions and the economic environment.
Effective tax management
Since you will receive the same tax rates as other super funds, you will be able to manage and put in place tax strategies that best suits you and your situation.
You have greater control over your own assets and you can obtain better certainty in the distribution of your assets with carefully drafted documents such as a binding death benefit nomination.
Things you need to know
You should ensure you understand the different investment options as you take responsibility for all investment decisions.
It is vital to always consider the risks and regulations that govern SMSFs, as you are responsible for your investments and complying with superannuation and taxation laws.
Having a sufficient cash flow (for loan repayments) is essential in SMSF property borrowing due to the risk as the cost is higher than a normal home loan on average (approximately 2% higher currently).
SMSF for small businesses
SMSFs are sometimes recommended to small business owners for a numbers of reasons, the most important one being able to have your business property owned by a SMSF and leased back to the business, providing secure tenure and opening up to the SMSF the capital growth of the property to the SMSF over time as the property increases in value.
What can we do for you?
Managing a SMSF can be more time consuming as you need to understand investment markets as well as managing an investment strategy that suits your risk-tolerance and retirement needs.
We can assist you with all aspects of establishing and maintaining a SMSF.
As we are experts in this field, we will ensure that all your investments are managed properly and that your SMSF remains compliant. Speak to our team and we will offer you advice on whether a SMSF is right for you!
Disclaimer: This advise is general only in nature and you should seek advice prior to making any decision about any of the above discussion.