Why Setup A Self Managed Superannuation Fund?
Self Managed Superannuation provides the ability to develop your own investment and insurance strategy for your retirement. Such financial decisions could include buying and or selling individual investments, in turn could generate a much higher return. If you want greater control over your retirement savings then you are in the right place!
A self managed superannuation fund has the added advantage that it can also pay a pension from the same fund. Some ordinary superannuation funds do not allow income streams to be paid from the same fund – instead they need to transfer out to another fund that allows a pension to be paid.
Important factors about Self Managed Superannuation
- You can have an extensive choice of investment options including cash accounts, term deposits, corporate bonds, managed investments, listed shares, Initial public offerings (IPO’s), listed investment companies (LICs), exchange traded funds (ETFs) and direct property in Self Managed Superannuation.
- You have potential tax advantages over other types of superannuation.
- Potentially lower annual fees with Self Managed Superannuation in comparison to retail and industry funds.
- Cost effective – While cost savings will generally not be a key driver of the decision to start a self managed fund, there are potential savings compared to public offer superannuation funds. The extent of cost savings depends on the type of investments and size of capital in the fund. Due to the setup costs and annual fixed costs associated with self managed superannuation, it is widely considered uneconomic to commence a self managed superannuation fund with assets of no less than about $350,000. If you do then one may need to weigh up how significant contributions to the fund could work better. The cost effectiveness of self managed superannuation funds will usually improve as the fund assets increase. As the fund balance increases, a greater proportion of assets may be directed to wholesale funds and direct assets such as shares and property for example.
More Benefits Self Managed Superannuation Offers
- Investing in direct property through Self Managed Superannuation.
- The ability to transfer personally owned listed shares, business real property and managed funds directly into your superannuation fund.
- The ability to own business real property in your self managed superannuation fund, to assist your business cash flow.
- The ability to operate the same self managed fund through accumulation and into retirement and beyond really does make self managed funds an attractive long-term financial planning structure.
- Tailored tax management on investment income and capital gains in Self Managed Superannuation.
- You have much greater flexibility with investment choices and asset selection.
- Control over your total investment portfolio, with the ability to take account of the risk profile of all your assets, including those held outside superannuation.
- The ability to pool your resources with up to 4 fund members with similar financial objectives, such as family members.
- Maximum flexibility in establishing and managing pensions, including account based, transition to retirement and term allocated pensions.
- Greater flexibility for accessing Centrelink benefits such as the age pension.
- Take care of the whole family – Self managed superannuation enables the whole family to be members of the same fund. Generally that is difficult at best with other types of superannuation funds, such as corporate funds. By having family members and their super assets in the one flexible superannuation fund that is purpose built for you and your family, it makes matters so much easier when considering your own needs and key matters such as estate planning.
Our experts at Wyse Wealth will setup your Self Managed Superannuation Fund for you. For proven results, get calling on 1300 850 902 today or simply leave your details below.