Why Self Managed Super

With the recent global financial crisis and superannuation taking a battering, more people are turning to Self Managed Super Fund (SMSF).

A SMSF is simply a superannuation fund that is controlled and operated by the members of the fund, who are also required to be trustees.

This 'control' ultimately allows the member to decide how and where their money is invested. This is particularly desirable at present where more people are turning to property rather than shares and managed funds. Choosing where to invest your money coupled with the ability to borrow under certain structures provides a very attractive alternative to the retail super funds.

SMSFs also give members control over their death benefits.

And of course there are also the tax benefits of having a SMSF. Not only can a SMSF structure be useful in the minimisation of individual tax, it allows trustees to develop and implement investment strategies aimed at minimising the after-tax return of the fund. And once in pension phase there are further tax advantages.

A SMSF isn't however, for everyone. There is a minimum amount of funds required to be rolled into the SMSF for it to be cost effective. There are also ongoing trustee obligations.

If you would like more information regarding Self Managed Super Funds please email me at sarah.willoughby@willoughbys.com.au

Please note the above is not advice. If you are considering setting up a Self Managed Super Fund you should seek advice from an accountant and financial planner.