If you have roughly $200,000 in your superannuation kitty and you can tackle additional costs approximately $1,500 to $2,000 yearly, there is every reason why you should go for a self-managed super fund. Learn the benefits of setting up a SMSF.
SMSF lets you control your investment
SMSF gives the oar in your hand and you become the helmsman. You can choose where you want to invest the money and how you want to diversify your asset portfolio. If you think real estate is where the money is, divert the Super fund towards it, or if you have a mind for bonds or holding collectibles, you have the freedom to go that way.
Direct investment in real estate possible
One concern with various other Supers is that you cannot put the money directly into commercial and residential real estate. SMSF not only allows you to do this, but also ensures that your purchase receives the best tax rebate pie. Think about it. The rental income you fetch as the landlord of your investment property is taxed at 15% (Super tax rate), rather than the really exorbitant marginal tax rate.
Profiting through a low CGT
A tax-free pension is another hallmark of a SMSF investment and if the period has started, you can gain from a relatively low 10% CGT, levied at the time of selling your property.
Professional advice must be sought
All said, there is little chance you will make all the sound decisions yourself. It is always worthwhile to get professional advice. And it really helps. For instance, how by yourself would you know just how important is the Binding Death Nomination while claiming the life insurance in your Super?
If you are looking for any advice related to your SMSF, feel free to contact me via my website or the contact number.