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Six Key Benefits of Self-Managed Super Funds

Author: Lucas Austin
by Lucas Austin
Posted: Jan 12, 2019

A self-managed super fund (SMSF) is a superannuation trust where the members are also the trustees. An SMSF can have one to four members, and as trustees, members have total control over the fund. While industry and retail super funds are designed to benefit a sizeable group of members with decisions based on shared interests, an SMSF is tailored to meet individual’s needs.

Consulting with a qualified Financial Advisory Firm WA can help ensure that you attain your financial desires and goals through suitable, tailored services to meet your individual retirement needs.

An SMSF in Perth offers members many key benefits including:

1. Choice of Investment

SMSFs provide members with more investment options than other super funds. Investment trustees can access include direct shares. Term deposits, high-yielding cash accounts, direct property, income investments, international markets, unlisted assets, collectables, and more.

2. Great Flexibility

SMSFs offer members to operate a mixture of pension and accumulation accounts. Trustees of the fund have the ability to adjust their investment mix as it benefits them, which allows for a quick response to changes in super rules, market conditions, or individual circumstances.

3. Tax Strategies

As with all super funds, concessional tax rates are beneficial to SMSFs. In the accumulation phase of the fund, there is a 15 percent tax cap on investment income; in the pension phase of the fund, there is no tax payable, this includes capital gains tax. As trustees move into retirement, well-thought-out tax strategies can help them increase their super savings and lessen tax payments. You’ll need to find a company who offers Business Consulting Services WA to help with this.

4. Significant Transparency

Transparency offered by the SMSF allows members to align their investment decisions with their personal goals. Whether you are passionate about shares, ethical, or property investing, a SMSF provides complete visibility over tax treatment as well as performance.

5. Cost-Effective

An annual tax return and audit must be lodged by the SMSF trustees. ATO fees must be paid annually as well. The more the fund increases, the more cost-effective it becomes. A good Financial Advisory Firm WA can advise you on this subject.

6. Consolidation

Trustees of an SMSF can combine their super assets with 1-3 other members, such as family members or partners. The ability to consolidate super accounts, instantly creates a greater fund balance. This larger fund balance increases the fund’s investment opportunities and assets, but with only one set of fees.

Ensure your future is secure by engaging Business Consultant Perth, or a reputable Financial Advisory Firm WA, who can guide and educate you in your self-managed super fund. Contact Armada Accountants and Advisors today to learn how we can help you establish an SMSF and reap the benefits.

The Final Thought

A self-managed super fund (SMSF) is a superannuation trust where the members are also the trustees. An SMSF can have one to four members, and as trustees, members have total control over the fund. While industry and retail super funds are designed to benefit a sizeable group of members with decisions based on shared interests, an SMSF is tailored to meet individual’s needs.

Consulting with a qualified Financial Advisory Firm WA can help ensure that you attain your financial desires and goals through suitable, tailored services to meet your individual retirement needs.

About the Author

Armada’s team of dedicated professionals work together to simplify your tax, accounting and finance requirements.

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Author: Lucas Austin

Lucas Austin

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Australia

Member since: Jul 05, 2018
Total live articles: 10

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