Should You Switch To A Self Managed Super Fund

We work our whole lives to make a life that we are proud of, a life for your family, and a hope to have a happy and stress free retirement. Not many realize how easy it is to forget about money for your retirement investment. An investment that allows this happy end of life. Self managed super fund accountants allows you to take control of your investment.


It can be very difficult and time consuming to set up and maintain. It is best to personally speak to a licensed professional to find out whether this is this best step for you. If you decide that you want to set one up for yourself then you will be responsible for complying with all of the super and tax laws. Not complying with these laws can have dire consequences so it is best to speak to a professional, they are able to help, they know all the laws, and they can help you decide whether financially this is the right step.


You will need a substantial amount (I.e 200,000) for a self managed super fund to be profitable. The higher your account the lower the associated fees. To boost your account you can have up to 4 members attached. Each member will have their own individual balance and each member will receive a statement each year with their personal balances. You may have only one member, but you must have at least 2 trustees, usually yourself and a family member. As a trustee you are responsible for record keeping and administration.


There are many benefits to changing to a self managed super fund. One of the main reasons people decide to make the change is the option for control. You are able to control how it is run and what services are used (such as accountants and lawyers). You have the flexibility to work your investments in your favour. In saying that there are laws that stop you from using this as a means of buying holiday houses or to pay for a vacation, these are illegal as they are not a means of retirement. You may however use this for estate planning, this is where some professional guidance is recommended so that you stay within the law.


Another benefit is that you can use this to get a loan to purchase things like property. This balance acts as collateral against the loan. You may also pool all balances from all members attached to your self managed super fund to buy larger assets. Having a SMSF gives you the chance to hold a more divers range of assets, I.e unlisted shares or direct property.


Because you can have up to four members you increase the balance. The higher the balance the lower the relative cost. This is why it is also recommended to speak to a licensed professional, they will help determine whether you have enough money accumulated to make this economically worth it. If you do not have enough to start a self managed super fund it is recommended to use a retail or industry fund.


It can be very financially rewarding for you if a self managed super fund works for you. The pros definitely outweigh the cons, but only if it is suitable for your personal situation. Come speak to a licensed professional and they will get you on the right track, explain everything that you need explained and help you set up your account so you can start taking control over your future now. Don’t put it off, every day is a new day for financial gain.

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