Wealth creation can happen in many ways and setting up a SMSF is one way of helping your reach your goal when you retire. In Australia, Self Managed Super Funds (SMSF), are becoming increasingly popular with individuals. The incentive to take control of your super especially after the Global Financial crisis in 2008, and the opportunity to invest in property are the two main reasons for individuals to setup a SMSF.
I am often asked whether SMSF is right for them because they have super. The main advantages of setting up a SMSF:
- More control over the range of investments
- Ability to borrow via SMSF to buy the investments and therefore leverage your money
- Ability to include family members to build a bigger pool
- Estate planning
- Asset Protection
- Tax concessions and Tax Planning depending on your circumstances
- Pension Planning Strategies
The time to consider setting up a Self Managed Super Fund is when you are ready to take control over your investment decisions and have some balance in your super. There is no minimum balance to start SMSF required by law. However, you need to understand what you are going to do with your money, what level of return you are planning to receive on your investment and what your administration costs are going to be.
With so much information and the volatile share markets, investing can be a challenge for many people. It is best to get the right advice when it comes to your super and your retirement funds. There are even more areas to consider for SMSF including compliance required annually and the SMSF strategy you need to create when setting up SMSF.
To understand the benefits of SMSF and if it is right for you, call us on 0432 366 690 to speak with our SMSF Specialist with extensive experience with Self Managed Super Funds. We will be able to assist you in making the right decision.