Have you ever looked at the returns on your superannuation statement and come to the conclusion that you could have done a better job yourself? Perhaps a Self-Managed Super Fund – or SMSF – could be the ideal choice for you.
According to the Australian Tax Office, approximately 7,000 Self-Managed Super Funds are established every three months. This is a trend that has been ongoing for the past 4 years and still growing.
The ATO recently published data showing that SMSFs outperformed large super funds (corporate, industry and retail funds) for 4 years out of 6. The results show that a large percentage of people who choose to take control of their own super are achieving better returns than those with super in other funds.
Why Create a SMSF?
Not everyone is happy for an anonymous fund manager to invest their retirement savings for them through an industry or retail superannuation fund. In fact, a growing number of Australians prefer to take control of their own money and manage their investments on their own.
When operated correctly, a self-managed super fund could potentially be more cost-effective than leaving your retirement savings in the hands of larger fund managers. The more hands-on you are about managing the administration and investments within your SMSF, the greater the cost savings should be.
You can roll your own superannuation balance into your SMSF. If your spouse is a member of your SMSF, any superannuation balances your spouse has can also be rolled into your DIY super fund. Your self-managed super fund can have up to four members.
Take Control of Your Self-Managed Superannuation
You have the power to take control of your retirement savings by establishing your own SMSF. You have control of how your money is invested. You have a choice of which investment options you want for your self-managed super fund and you can choose how you want to diversify your investments.
It’s up to you whether you want to invest your retirement savings in term deposits, bonds, managed funds, shares, or even purchase an investment property in your SMSF.
You have the freedom to select your own SMSF investment strategy in line with your own retirement goals. The result is that you’re in control of your superannuation returns.
Is a Self-Managed Super Fund Right for You?
The idea of controlling your own SMSF might be tempting, but with that control comes some additional responsibility.
The Australian Taxation Office (ATO) has put some strict rules and regulations in place for anyone wanting to manage their own self-managed super fund. However, with the guidance and advice from a specialist SMSF advisor, it should become easier to understand the responsibilities and duties required.