Self-managed Super fund or SMSF is a form of Superannuation wherein the member is himself the trustee and the one who manages the fund on his own. This gives great control and flexibility over the investment. With SMSF, you can choose to diversify your fund’s asset in any way you deem fit.
SMSF gives you control and flexibility
There are many who feel that property market is the road ahead. They can look towards the real estate, composed in their minds that Super-related tax deductions will add to the profit they make on the property portfolio. Similarly, there are others who can divert their money towards bonds, stocks and ‘collectibles’. The idea is a winning one.
SMSF is being chosen by more and more people
The change of economic guard which followed the most recent economic meltdown brought down our dependence on the unitised Super funds and had us rushing for SMSF investments. Is it not quite a success story if a product soaks up 40% of the market in little time?
SMSF allows various tax concessions
SMSFs offer you the choice of enjoying your select tax concessions and position your tax the way you want to. Being able to be managed from anywhere across the planet, SMSF gives you the upper hand in terms of estate planning. Here, demise of a family member makes you the immediate beneficiary of his tax benefits.
There are demerits like ‘life insurance in a Super’, too
Of course, the grass cannot be constantly green. Life insurance inside Super presents an example of what may pass as a demerit of SMSF. Your premiums may affect your fund per se. Benefits meted out to the spouses of the dead member have to pass through the other SMSF trustees. Quite naturally, there can be delays in such cases. And I am not done. Even, Trauma Insurance coverage and its likes may not turn out to be adequate.
All said, there is definitely an SMSF wave doing rounds. I, for one, make a living out of advising people on the best road ahead and am proud to be associated with this sector of the Australian economy.
Feel free to contact me here if you have been seeking any recommendations on your SMSF.
