As the name explains, a SMSF or a self-managed super fund is a private super fund which you manage yourself, it is even called DIY super. SMSF set up provides their members flexibility, control and also choice on how their retirement savings must be invested. Other several reasons to choose SMSF are poor performance of any existing public fund and can be advice from a financial planner or an accountant.
In other words, a self-managed superannuation fund or SMSF with iCare can be the best way to build your wealth for retirement. Though they are not for all, it is essential that when you think of starting an SMSF, people must properly understand the responsibilities and benefits they take to have an SMSF. However, it must also be remembered that it is like an investment vehicle, and carries with it, several obligations as well.
Here are some amazing benefits of an SMSF:
- Greater flexibility of investment
SMSF members have better or greater flexibility on if they acquire and sell most of their investments and this great hand-on approach could mean, for e.g. as the market conditions change you could faster respond by simply adjusting your investment portfolio.
- Ability to pool your resourcez
Other outstanding benefit to an SMSF with iCare is the great ability to pool your resources with maximum to 3 other members. The increased pool might allow you to easily access the investment opportunities which might not be available to your SMSF otherwise.
- Investment control
Many superannuation funds would allow investing into assets like:
- Fixed interest
- Shares
- Property through managed funds (mostly with restrictions).
SMSFs could offer a wide range of additional options like:
- Physical gold and types of commodities
- Managed portfolios
- Direct property (residential or commercial)
- Collectables like artwork (that are subject to strict needs
SMFS benefits even include the great flexibility of borrowing with your fund for investment needs. A few small business owners might hold their business premises in their SMFS for various reasons that include succession planning, asset-protection and security of tenancy.
- Efficient tax management
You have better control of your investment decisions and assets in an SMFS that might allow you to perfectly manage the position of tax of the SMFS.
The rate of current tax on earnings in a superannuation fund is 15%, however where the income is often produced by assets, solely supporting an income stream like a pension, there will be no tax payable in the fund on that sort of income.
This difference in the tax rates simply means that by having a good control on the asset disposal, you might be able to reduce, or even potentially get rid of capital gains tax liability.
SMSF set up needs strict compliance with all government mandated regulations; therefore you must make sure to do it correctly, by speaking to the best SMFS setup specialist at iCare Super in Australia. So what are you all waiting for, start investing for your future needs today for setting up an SMFS, and if looking in Australia choose iCare as they offer comprehensive SMFS compliance service.
