A self-managed super fund (SMSF) stands as a superannuation trust structure designed to offer benefits to its members during retirement. The unique feature that sets SMSFs apart from other super funds lies in the fact that the members themselves assume the role of trustees for the fund. This characteristic empowers SMSF members with a heightened level of control and decision-making authority over the fund’s operations and investment strategies.
As both beneficiaries and custodians, SMSF members hold a pivotal role in steering the fund towards financial prosperity and achieving long-term retirement goals. The important connection between members and trustees within the SMSF framework is a dynamic approach to managing retirement savings, fostering a sense of autonomy and personalised financial stewardship.
How much do you need to set up SMSF?
According to ASIC research, initiating a SMSF with less than $100,000 in superannuation savings is only deemed cost-effective if you intend to make substantial contributions or transfer super from other funds.
Is a SMSF worth it?
Self-managed superannuation funds with assets totaling less than $1 million often underperform institutional funds due to significant costs associated with fund management. Consequently, for many investors, the potential benefits may not outweigh the drawbacks.
What are the benefits of SMSF?
- Investment choice
- Tax strategies
- Transparency
- Cost
- Consolidate superannuation assets
