As the main heading suggests, Self-Managed Superannuation Funds (SMSF) is where you as a trustee take control on how you manage your superannuation wealth with the purpose of having the best outcome for your retirement. Being in-charge of your future finances is the main selling point of having this structure.
According to the Australian Tax Office (ATO) “SMSF – A Statistical Overview 2009-2010”: In the five years to 30 June 2011, SMSFs have been the fastest growing sector of the Australian superannuation industry. Between those 5 years, SMSF numbers grew by 31%, a net average (between establishments less wind ups) of around 29,500 new SMSFs per year (approx. 2500 per month) while wind ups averaged at 4,700 a year.
Managing your own superannuation fund is a very significant financial commitment that affects the outcome of your retirement future. As this is a life changing exercise, these are bound under strict guidelines with regards to compliance and regulations set by the ATO.
So why the average of 29,500 new SMSFs are created each year? It is the fact that the members have greater control of what investments to take part into, ongoing management fees and ultimately their tax payable. With proper management and advice it will let you take advantage of tax and superannuation law changes as soon as they come into effect.
SMSFs can be a means for family members to pool their resources and grow their wealth together. It can effectively transfer wealth between generations with estate planning. It also offers lower management fees and greater control over the investment process compared to the conventional superannuation products in the market.
Before you decide if this is right for you, you need to weigh up the advantages and the added responsibilities on having one as opposed to just having the traditional way of growing your superfund through a specific management fund.
If you need professional advise or setting up your own SMSF, we here at Advance Business Centres can help you further achieve your financial goals and guide you through the process of managing one for yourself. We establish SMSFs, prepare financial statements and audit funds.
Please don’t hesitate to contact us either by email or phone for an appointment. This could be a start for a much brighter future. So ACT NOW!