What is a Self-Managed Super Fund? - Has less than 5 members;
- Each individual trustee of the fund is a fund member;
- Each member of the fund is a trustee;
- Typically, a husband and wife are the members and trustees of their own fund, hence SMSF’s are sometimes called Family Superannuation Funds.
- Is commonly referred to as DIY funds or Mum and Dad funds and is the fastest growing sector of superannuation in Australia.
The growth factors include:- Growing awareness by baby boomers of the need for better superannuation investment performances.
- Entry of self employed persons into superannuation who may be seeking ways of investing in their business property.
- Increased awareness of employees and business proprietors of the additional tax benefits and potential lower costs of superannuation through SMSF.
- Growing understanding of the benefits of retirement income streams being paid through SMSF, including improved access to Centrelink benefits.
- Flexibility and tax effectiveness of estate planning and life insurance options with SMSF.
What does a Self Managed Superannuation Fund offer?
A SMSF offers the following features:- Flexibility
- Control
- Reduced cost potentials
- Investment opportunities
- Control of capital gains and contribution taxes
- More pension options at retirement
A SMSF can operate for the rest of your life or the rest of your partner’s life or continue for your children. This death benefit flexibility has advantages for estate planning. They also have the ability to purchase life, TPD and income protection insurance.
|
|
|