PrimeAccounting, PrimeWealth, PrimeAudit, ThePrimeAdvisoryGroup, Chatswood, NSW, Australia

The 7 Benefits of Self Managed Super (SMSF)

Control

You, the trustee, have complete control over what happens in the fund. If you are not happy with how your fund is performing, you can change your investments. You decide when investments are bought and when they are sold.
 
Investment choice & flexibility

You can invest in just about anything as long as the investment strategy allows it. So this means you can purchase land, commercial or residential property, a seaside cottage or even a bottle of expensive wine as long as it is in line with the ATO's arm's length rules  - SMSF FAQs 

Taxation

Earnings are taxed at 15% in the fund and, under certain conditions, can be taken out tax-free when you retire. Compare that to investments outside Super which might, depending on your personal circumstances, be charged at your Marginal Tax Rate (likely to be 30% or higher). If your investments have grown in value, Capital Gains Tax will also need to be paid on realisation of the asset regardless of your retirement status.

Proportionately decreasing fees

Depending on their size, SMSFs can be cheaper to run than public offer funds (often referred to as 'retail' funds). Public offer funds usually have costs allocated as a percentage of the assets of the super fund. SMSF funds have fixed dollar costs that are proportionally cheaper as the fund gets larger. 

Unique investment strategies

There are unique investment strategies that can only be undertaken by SMSFs. Gearing in Super or using your super to borrow to purchase assets such as property is an opportunity not available to regular public offer funds.

Creditor Protection

A member's fund assets are normally protected from creditors in the event of bankruptcy.

Creation of a family legacy

SMSFs allow for more flexible estate planning in that an asset does not necessarily have to be sold on the open market in order to be passed on to a beneficiary. Property can be passed to your children. In a public offer fund, investments would normally have to be sold down to cash before being passed on.

We recommend you come to one of our SMSF workshops to find out more. If you would like to discuss details about setting up or managing your SMSF, call us.

DISCLAIMER: PrimeWealth is an authorised representative of Securitor Financial Group Ltd and provides financial planning services for superannuation, managed investments, personal risk insurance, shares and self managed superannuation fund investment advice. Your Adviser may offer you services through PrimeWealth and ThePrimeAdvisoryGroup which are each separate businesses. 

Although the same Adviser may offer you services under the above businesses, each business is solely and separately responsible for the advice they each provide. In particular, Securitor is only responsible for the financial planning services for superannuation, managed investments, personal risk insurance, shares and self managed superannuation fund investment advice provided by Guy Wall, Christian Borkowski, Kevin Bettman and Jason Lund.