Benefits of Self Managed Superannuation Funds (SMSFs)
There are many benefits to participating in a SMSF.
The SMSFs investments can be tailored to suit your specific needs before and after retirement. The Trustees have the flexibility to make changes to the SMSFs investments quickly and easily and the SMSF may pay a pension to you on your retirement.
The Trustees decide on the investment strategy and choose what assets the SMSF will invest in as well as how and when those assets are invested. If the Trustees choose to run the fund with segregated assets then members may be allowed to give the Trustees directions about how their share of the total assets are to be invested in relation to the investment strategy. The Trustees are also responsible for monitoring the ongoing performance of the SMSFs investments.
The SMSF (subject to certain limitations) will generally be able to invest in an extensive range of investments available to Australian investors including investments not always available in other types of superannuation funds, such as investment properties, direct Australian and international shares and direct fixed interest. The Trustees may choose to seek the assistance of a financial adviser to assist in selecting the most appropriate investment strategy to meet member’s investment needs.
Subject to the then current superannuation laws, the SMSF has an unlimited life span and may continue to provide benefits into the future for members and their dependants.
Subject to the Trust Deed, SMSFs and superannuation laws your SMSF can accept most types of allowable contributions. When using the yourSMSF preferred Trust Deed the following types of contributions are allowed.
- Salary Sacrifice contributions
- Eligible spouse contributions
- Eligible termination payments
- Superannuation guarantee vouchers
Subject to the investment rules, you may be able to transfer certain assets that are currently held in your name into the SMSF in place of cash contributions. These transfers may be subject to stamp duty and tax.
Depending on your individual circumstances and the value of your investments, the SMSF may provide cost savings compared with other types of superannuation funds.
SMSFs provide the ability to package very tailored insurance solutions for members over and above the standard schedule based solutions offered in many larger funds.