TAKE CONTROL OF YOUR SUPER WITH A SELF
MANAGED SUPER FUND (SMSF)
To date, most Australians have invested their Superannuation in Retail or Industry Superfunds to which their employers contribute a percentage of their salary. Fund managers then make investment decisions on behalf of the members of those Funds.
Under this arrangement, not only are you just a number, at the mercy of others making decisions with your money, you are also paying fees and salaries to those funds & managers, leaving you to share what is left over. You hear many stories of the wonderful return’s being achieved by these funds, what you are not informed about are the large amount of fees and charges deducted before you receive your funds. Deduct these fees and charges……different storey.
Australians in greater numbers however are embracing the concept of a self-managed super fund (SMSF) to hold their retirement savings. In the past 10 years, over 1.1 million Australians have switched from Retail or Industry Funds to SMSFs. The main reason is an SMSF. gives you total control of your Super by allowing you to choose where you invest your Super Benefit.
Should I consider a Self-Managed Superannuation Fund?
There are two main reasons why you should consider setting up a Self-Managed Superannuation Fund.
“Control” – In the current market environment, many promoters of Self-Managed Superannuation Funds talk about giving you back control of your Super with the idea that managing your own Super will improve your investment returns. While this is possible, we’ve also seen many cases where people have destroyed their Super balance by not being diligent.
With great control comes great responsibility. With a SMSF, you are ultimately responsible, not just for the investment returns, but also for ensuring that your fund remains compliant with ever changing legislation. Through our licensed partners your fund is taken care of for you, in fact you just need to keep it at arm’s length and let them take care of your SMSF. for you, they will always be in touch with you to make sure you understand what needs to be done.
“Investing in Property” – Whether you want to invest in residential property or a business premises, a SMSF provides an excellent structure to purchase additional ‘lumpy’ investments. There are a few additional hurdles to jump through but investing in property is one of the very few reasons some people should have a SMSF. If you want to go down this path, I recommend that you speak to us at “Green Property Investing” about putting structures in place and assessing your maximum purchase capacity long before you start looking at which property you’d like to purchase. This will reduce the number of things that could go wrong along the way. Our tip: Put as much as you can into Superannuation and when you have enough; invest in property.
EXAMPLE
SUPERANNUATION
$200,000 INVESTED IN A SUPER FUND (OR LESS)
MIGHT BE WORTH $400,000 IN 10 YEARS, WHO KNOWS.
SELF MANAGED SUPER FUND
USE THE SAME $200,000 TO INVEST IN A $450,000
PROPERTY AND IF IT DOUBLES IN THE SAME 10
YEARS OR SO……IT’S NOW WORTH $900,000