Mar 11
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In these uncertain financial times it is little wonder that more and more Australians are deciding to take control of their own finances, taking the power away from big business and directing funds to where they want them. Self managed super funds now represent a whopping 30% of the market, and more and more Australians want to take the reigns when it comes to their superannuation investments and drive their futures themselves. If you’re thinking of managing your own super fund but aren’t sure of what’s involved, this article will give you some advice on the benefits of taking control and the ways in which you can do it.
1. The hassle of changing super when you move from one job to another is a pain that can be avoided, and it is estimated that a large number of Australians simply never reclaim super that is rightfully theirs because of the logistics and fees associated with chasing it up each time. Managing your own super fund you can take it with you from employer to employer, never having to worry about losing what you are owed.
2. If you want flexibility in terms of financial planning, a self managed super fund is as flexible as it gets. While you still have access to your advisor (and should consult them before making any changes) you have the freedom to take risks–or not to–but that choice is yours alone.
3. While the government is always moving the goal posts and changing the rules when it comes to regulations on super, this can actually work in your favour in a self-managed fund. For example, when the government makes a change that could benefit you but your super funds are managed by a company, it may be some time before the company decides to implement those changes, if at all. When you’re calling the shots you are able to make those positive changes as soon as your advisor makes you aware of them.
4. The government offers tax concessions to people who manage their own super funds, which means you can take full advantage of these and maximise the value of your fund.
5. In the event of your death, some super funds can make it difficult or costly for your super funds to be passed on to your next of kin. Managing your own fund gives you the peace of mind of knowing that should the worst happen, your loved ones would be swiftly and easily looked after.
6. Fixed fees are another benefit of SMSF because they will not grow as your fund does, making them the most cost effective solution to your super needs.
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