Self Managed Super Fund (SMSF)
Is it any wonder why people are opting to self manage their super,
and use it for property?
"Entrenched underperformance in the $2.6 trillion superannuation industry is system-wide and is costing Australians a fortune.
Retail funds have chronically underperformed industry funds over the past 12 years by almost 2 per cent, according to the Productivity Commission's draft report. But the real scandal is that one in four funds – retail, industry, corporate and government funds – persistently underperform and they have been allowed to get away with it." 
Leverage is a VITAL ingredient to build wealth Now let’s take a look at reality.
Once you have money to invest you can basically park it anywhere. Of course, the goal is to put it where you will get the best returns.
As you know there are many options available, including: superannuation, businesses, precious metals, property, shares, fixed deposits and more. Property investing has been a popular asset choice, for lower paid to the highest earning Australians, who want to build wealth for generations. Investing in stocks is seen by many as more volatile than property, because property values will never go to zero. Due to inflationary pressures, fixed term cash deposits don’t offer the returns many seek – as self-funded retirees will attest to.
• Only 10% of Australians have more than $100,000 in their super accounts.
• Millions of 30 to 34 year old’s will struggle in their retirement
And this quote from a report by the Association of Superannuation Funds of Australia puts superannuation into perspective;
“On the basis of the current average superannuation balance and average income and the assumption of only compulsory superannuation contributions being made, the average retirement superannuation balances were around $43,580 for men and $33,750 for women of those aged 30 to 34.”
Now let’s take a look at reality.
According to the ATO, here are some facts about SMSF member balances at 30 June 2016:
• The average SMSF member balance was $599,000
• The median balance was $362,000
• An increase of 26% and 32% respectively over the five years to 2016 the average member balances for female and male members were $511,000 and $641,000 respectively
• The female average member balance increased by 30% over the five-year period
• The male average member balance increased by 22% over the same period Over the five years to 2016, the proportion of members with balances of $200,000 or less decreased from 42% to 32% of all members
• In 2016, the majority of members had balances of between $200,001 and $1 million
Did you know?
Many recent retirees will need to substantially rely on the Age Pension in their retirement.
Contact us below, or call 1300 883 854
[1. The Financial Review. 2018. Royal commission prepares for super industry showdown. [ONLINE] Available at: https://www.afr.com/…/royal-commission-prepares-for-super-i….]