At any point in your career, it’s essential to take a serious look into financial…
When deciding how to save for your retirement, setting up your superannuation fund is one particularly important step that you need to consider carefully. While each type of super has its own set of advantages and disadvantages, selecting the right one will ensure that you have smooth sailing Golden Years to look forward to.
No matter what type of superannuation fund you choose, whether it be large or small, or individually managed or not, it pays to know the unique features behind each in order to make the most informed decision about which one is right for you. This blog post will focus on self-managed superannuation funds or SMSF and why it may be a good option for you to consider.
Top Benefits of Using a Self-Managed Superannuation Fund
Should you be looking into gathering more information on SMSF and its advantages, here is a list of the top benefits you may be able to get from this type of super:
1. Purchase Property
Business owners who use an SMSF may have great advantages with this type of super. One unique advantage of an SMSF is that it can purchase a commercial property from which the business owner can then operate from. In turn, the rent the business pays then goes into the SMSF as income.
2. Control Over Investment Decisions
Other types of supers may not allow the members or trustees the freedom to buy and sell particular investments. They will not be able to decide when the “right time” to invest maybe because of the restrictions. Owning an SMSF can give you greater control as to when market conditions change you can quickly respond by adjusting your investment portfolio.
3. Asset Protection
One of the lesser-known benefits of SMSFs is that it offers creditor protection. This feature is one that small businesses may be able to take advantage of, especially if one of the members of the SMSF gets into a financial bind. Asset and creditor protection will ensure that valuable assets designated for retirement will be protected.
4. Advantages in Estate Planning
Lastly, this feature will ensure that all the beneficiaries get what is coming to them in a timely and organized manner.
SMSFs offer great flexibility with your estate planning needs. If the fund’s trust deed allows it, SMSF members can make binding death benefit nominations that do not lapse, unlike many public offer superannuation funds which tend to require binding death benefit nominations to be updated every three years. In addition, SMSF members may have greater flexibility in specifying how death benefits are to be paid.
In a nutshell, using an SMSF will provide trustees with the satisfaction of having control over the features of their investments and help them take the steps to build wealth in their retirement. These trustees will be free and empowered to make their own decisions for themselves and for their financial future. However, SMSFs may not be effective for everyone, especially if they are not so well-versed in financial planning or their balance is small. Seeking advice from a reliable financial adviser before making a decision about your super is a good idea.
To know more about tips in managing your finances during your retirement years, check out these posts:
- Should You Leave Your Superannuation in the Accumulation Phase?
- A Basic Guide to Your Superannuation and Preservation Age
- 3 Things to Consider about Your Super and What It Covers
If you need help deciding what type of super to choose, come to Coastal Advice Port Macquarie. At CAPM, we guide our clients to enjoy their dream retirement through the delivery of personalised financial advice. Work with an experienced SMSF adviser by contacting us at 1300 143 510 today!
DISCLAIMER: The views expressed in this publication are solely those of the author; they are not reflective or indicative of RI Advice Group’s position and are not to be attributed to RI Advice Group. They cannot be reproduced in any form without the express written consent of the author. This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice. Newcastle Financial Planning Group, Central Coast Financial Planning Group, Sydney Wealth Advisers, Coastal Advice Port Macquarie and Coastal Advice Ballina Byron are subsidiaries of Coastal Advice Group Pty Ltd which is a Corporate Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.