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.
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The economic meltdown of 2008 challenged various norms, no less the financial ones. Traditional fortresses of investments capsized and people started hunting for new means to secure their money and future better. Unitised superannuation funds got the stick and in its place the SMSF investments surged ahead in public perception. The fact that 40% of super funds are held in ‘Self-managed’ today tells its own story.
Come 1st of July 2014 and any employer with more than 20 employees under his belt will have to be really diligent in providing details of his superannuation contribution. SuperStream, also referred to as Data and Payment Standards, asks all the employers (passing the ’20 employee’ criterion) to pay super payments to their employees with the help of the government’s payment system.
At a point in time when inflation is beyond the expected standards and interest rates are constantly dipping, it may not be wise to place a large fraction of SMSF money in cash. This, however, is exactly as the things are, writes Kate Cowling, in an article for the website Super Review.
Extremely concentrated SMSF portfolios may suffer due to lack of diversification and cash funds are only expected to trip owing to the combined effects of tax and inflation.
ETF seems to be the perfect risk-averse idea; given its ability to diversify SMSF investments.
You can read the original article here.
What is your take on Exchange Traded Funds (ETF)?
The number of people believing that the SMSF is a powerful way of consolidating investments is on a rise. This is not surprising because even the fiercest critics (any new idea arrives with its fair share of detractors) have now warmed up to the many advantages presented by Self Managed Superannuation Funds (SMSF). Let me waste no time in taking you through 4 such benefits.