Myths need to be debunked, whether they are about an urban legend or the self-managed super fund. There is a lot of noise around how SMSF is only good if you have about $200,000 in your kitty. Let us find out if there is truth to this claim.
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.
The Australian government believes there are at least 3.4 million lost Super accounts and the funds add up to a herculean $16.8 billion. What are the consequences of a lost Super and how can one deal with it?
Should you own your life insurance inside or outside your Super? It is such a crux question — one that gives sleepless nights to SMSF members. There is something beautiful to say about both the worlds. Of course, the first thing before you make your decision is to comprehend your ownership structure. What endorsements and exclusions do you want in your cover? What kind of marginal tax rates will apply? Who your beneficiaries are going to be? These are just some of the questions you need to answer to be able to help you make a firm decision.
In an article for the website Investor Daily, Miranda Brownlee suggests that the really flashy super funds which propose expensive features and services do nothing to make life better for their members.