There are many advantages of Self-Managed Superannuation Funds (SMSFs) compared to other superannuation forms, including greater freedom and control, tax benefits, and cost-effectiveness. If you are thinking about setting your own SMSF, then you are at the right place, in this content we are going to talk all about the SMSF.
What are self-managed superannuation funds?
A Self-Managed Superannuation fund (SMSF) is a financial lucrative way to save money for your retirements. SMSFs are different from other super funds because they are run by you, for you, and other members of your SMSF. It is a regulated superannuation fund that has four or fewer members, they can be close friends or family members. The fund members are also the trustees of the fund; therefore, they have the freedom but are also responsible for everything that happens with the funds. An SMSF will give you more control over your superannuation and retirement planning, but it is important to understand the responsibilities of being a trustee. However, there are many things that you need to consider before going with an SMSF.
Choice of Fund Investments – It offers more control and flexibility. SMSF allows you to construct your fund’s investment strategy and enjoy more control over your investment options. The power of choosing investments for the SMSF resides with the trustees, but the trustee must meet the relevant superannuation laws regarding investment choice. SMSF offers a range of investments, including direct shares, overseas assets, property, and the traditional asset classes.
Estate Planning – SMSF is a flexible, targeted, and tax-effective fund that allows you to channel income streams to a member’s spouse and eligible children in case the trustee dies. However, estate planning challenges may arise with the operation of an SMSF, and that’s why the members must follow all the rules and regulations before investing in the SMSF.
Cost-Effective Administration and Reporting- The cost of managing the superannuation fund is lower than a traditional retail fund, depending on its size, the complexity of the investments, and how it is managed. You can easily pool your super fund with members to create savings and also invest through SMSF bitcoin. For larger funds, there can be significant cost advantages as they are responsible for ensuring the administration and reporting are completed to the appropriate standards.
Potential Tax Advantages- SMSF provides a flexible platform to manage the members’ taxation liability through selective investment such as high-paying dividend stocks and capital gains tax. There are ways by which the transfer of assets to the pension phase where they become tax-free, as well as other legal tax management strategies.
Family Super Fund- SMSF allows a family of four members to belong to the same fund. A Family Super Fund allows the investment of a family’s superannuation funds and provides a pool of assets to look after family members. Family Super Funds also allows the trustee to pass out the benefits of the fund to your family through estate planning.
Final Words
New Venture Health provides a comprehensive approach that helps you set up and run your SMSF. We deliver a complete SMSF package so that you can run a successful SMSF. Contact us to book a free consultation today!