06 Nov Benefits of a SMSF

There are many benefits to managing your own super fund these can include

Control

The money invested in your own super fund is ultimateley controlled by you as the trustee. You also hold the responsibility for all decisions made

Choice of Investments

A self managed super fund can invest in a very wide variety of options with the absolute discretion of the trustees. Whilst this provides a lot of opportunities for success it also provides opportunities for trustees to make serious errors through not diversifying the fund enough or taking on too much risk

Taxation

A self managed fund enjoys a maximum rate of tax of 15%, with careful planning and the right strategy this tax rate can be lowered even further. During retirement and transitioning to retirement the funds tax rate is substantially lowered and in most cases reduced to nil.

Fees

Whilst a self managed super fund is not free to run it does provide you with the opportunity to reduce costs through pooling investments with family members and achieving economies of scale. Larger funds have a much greater opportunity to achieve real cost savings

Flexibility

Fund trustees have the flexibility to make decisions with respect to changing market movements and substantial options for retirement income streams

Creditor protection

Assets held within a super fund are protected from creditors in bankruptcy proceedings. That is unless funds have been placed within superannuation in anticipation of bankruptcy