With widespread media coverage and attention on the potential shortfall of many Australian’s retirement savings, self-managed super funds are growing in popularity. According to the ATO there are now over 500,000 SMSFs in existence and over 1 million trustees.
The reality is, how you manage your superannuation and retirement savings today will have a significant impact on the choices you will create for yourself in retirement. This is why SMSFs are rapidly becoming a favourite for Australians who want greater control of their retirement plan.
So why are so many Australians choosing SMSFs and why should you consider setting up a SMSF? Here are a few of the benefits MRD clients have experienced utilising a more hands on approach to managing their superannuation:
For many Australians, superannuation is their largest investment asset behind their family home, so naturally they want to have more control and direct influence over its investment decisions.
With a SMSF, you can decide how and where you would like to invest your retirement savings. With growing technology in the SMSF space, in many cases you can view your retirement savings in real time and control payments going out and investment income coming in.
SMSFs typically open up a wider range of investment options than traditional retail or industry super funds.
With a SMSF, you can invest in direct Australian and international shares, cash accounts or term deposits, direct residential or commercial property, unlisted assets and more.
This strategy requires specialised expertise in both the administrative setup and finance arrangements and should be considered in the context of an overarching investment strategy so it’s suitable and relevant to your retirement goal planning.
At MRD, we know that investing in property with a SMSF is becoming increasingly more popular, but it is set up under strict rules regulated by the Australian Taxation Office (ATO) and may only be suitable for people with an understanding of super and financial and legal matters.
There are also a number of self managed super funds pros and cons you need to be aware of.
This is why we partner with licensed professionals in this area, who work directly with our clients, providing a seamless, rewarding experience.