With DIY Superfund to a Secure Financial Future

Everyone wants to be financially successful in life. However, most people don’t want to cut on many expenses in order to invest into their future financial stability. One way to achieve that in Australia is to start your own self managed super fund. For over 2 decades, the SMSF has been one of the fastest growing sectors of superannuation.

The reason why many people have resorted to SMSF as their path to financial success is its flexibility and the control it gives them over their investments. The sole purpose of the DIY Superfund is to save you money for your retirement. It can have up to four trustees who are usually family members, and the person that sets it up is automatically a trustee and a member of the fund.

However, the responsibility doesn’t fall only on the person who sets up the fund, as all members are equally responsible for all aspects of administration, operation and compliance of the fund. All the decisions made regarding the fund need to be solely for the purpose of retirement benefits or death benefits to the beneficiaries of a member.

There are numerous key benefits to engaging in a DIY Superfund, one of them is the variety of investment options it provides you, which are significantly more than any other superannuation fund will. All the trustees have access to direct shares, term deposits, income investments, high-yielding cash accounts, direct property, international markets and more.

All of the above is possible by the significant transparencies that permit trustees to align their personal goals with investment decisions. Whether a trustee is passionate about shares, property or ethical and sustainable investing, the SMSF will allow you to get a grasp on where the money is invested with 100% visibility over tax treatment and performance.

Furthermore, an SMSF with large balances will usually have lower fees than other large super funds, depending on the circumstances of course. The reason for this is that the administration costs of SMSFs are more or less fixed, irregardless of the balance. Plus, SMSFs investing directly rather than through managed funds are not liable for fees on a percentage of their investment.

And last but not least, combining the assets of multiple trustees will create a large fund balance, which will increase the investment opportunities for all of the trustees and you’ll be obligated to pay one set of fees only.

There are endless possibilities when it comes to the SMSF. Doing it yourself is one way to go about it if you have the right knowledge and the time to operate it effectively. If you feel comfortable dealing with legal and financial arrangements that come along with the SMSF, then this is the right step for you if you want to cut down costs on accountants and bank fees.