A lot of people are already setting up or thinking about setting up a self managed super fund (SMSF) to ensure they have a fruitful retirement. A SMSF is composed of four members who are mostly the trustees themselves. Such rule is applicable no matter whether you are setting up SMSF under a corporate or individual structure. Each member is obliged to run the fun for the members’ benefits. The management includes selecting the best investment technique, paying benefits, investing assets and complying with the requirements, laws and rules of the tax department. Additionally, a number of people set up SMSF because they have been advised to do it for future security or they aren’t satisfied with their current funds. Regardless of your reason, there are many benefits of setting up a self managed super fund
As each member is a trustee and takes part in managing the SMSF, this offers greater control. And perhaps this is one of the main reasons more people are setting up their own SMSF.
In terms of investment strategy, SMSF provides greater versatility. With this, you have the option to invest in assets that couldn’t do with other super funds. For instance, it is possible to invest in exchange traded funds, direct property, shares, bonds, etc. This flexibility lets members of the fund to decide on the right investment strategy and where the assets of the fund will be invested.
In case your current super lets you pay higher taxes, setting up an SMSF is the right solution. As long as yourself managed super fund complies with all government regulations, you can benefit from the tax concessions that government offers. Additionally, with SMSF, the assessable income earnings are taxed at 15 percent maximum concession rate. A good Central Coast accounting firm can help you understand this and other tax concerns.
Fees are Not High
Latest reports show that members of SMSF pay less fees than other super fund members. Certainly, certain investment considerations and minimum transaction number are necessary for lower fees.
Help is Available
Erina accountants to set up your self managed super fund. They can assist you with your SMSF requirements, from set up to management, to professional auditor referral and tax work. They can help you organise and understand your commitments to yourself managed super fund.