Brief Benefits of SMSF
With the advertising of this particular style of investment going through the roof, it is only natural for the Australian consumers to be inquisitive and enthusiastic. Despite the detailed legal responsibilities involved with beginning a SMSF, it can be highly rewarding, putting you in control of your retirement and building a healthy nest egg.
Below are just a few of the numerous benefits involved.
• Taxation – SMSF’s can allow trustees plenty of options with their taxation. Tailored approaches allows for taxation benefits in regards to capital gains tax and in retirement mode, income tax.
• Investment Choice – Flexibility is available within a SMSF in regards to investment selection. This allows for geared investments and non-traditional assets.
• Direct Property – Buying a property in a SMSF is now far more attainable since a change in legislation by the federal government in 2007, whereas a retail fund usually cannot. This allows for multiple types of property investments being purchased, or commercial property transferred, into your SMSF.
• You’re not on your own – Trustees can source out accountants and financial planners to help maintain their SMSF or they can do so themselves.
Many Australians are converting their funds to be self-managed. During the period June 2004 to June 2012, SMSF increased on average 7.34% every year. As of June 2012, 907,036 Australian citizens were trustees for SMSF’s, with 4% of Australia’s population now actively involved in managing their own super.
There are a variety of investment choices out there for consumers, and investing in a self managed super fund puts up a valid concept for consideration.