What Is An SMSF?
A self-managed superannuation fund (SMSF) is a fund where the members are trustees of their own fund. An SMSF can have a maximum of 4 members and each member must be tax residents of Australia.
The Rise Of SMSF
Today, SMSFs make up more than 30% of all superannuation assets. According to the ATO, as at 30 June 2017, there are over 1 million members invested in an SMSF.
The number of SMSFs set up has grown at an annual rate of 5% over the last 5 years.
2017 Superannuation Assets by Type
While the majority (60.7%) of members in SMSFs are aged 55 and older, 32.3% of establishments are coming from the 35 – 44-year-old age group.
The steady trend of younger SMSF trustees establishing their own funds is indicative of the growing popularity of SMSFs as a tax-effective vehicle for wealth accumulation, rather than just a retirement plan.
2017 Quarterly SMSF Establishments by Age Group
The primary consideration of establishing an SMSF is that it offers greater control and flexibility of investments. A myriad of strategies in conjunction with careful planning allows for tax concessions and broader access to investment options.
The benefits of SMSF:
Greater control of your money – An alternative solution to existing large retail and industry super funds.
Unmatched investment choice- Ability to expand your investment portfolio in vehicles including collectables, residential and commercial property, and even gold bullion.
Access to tax effective strategies – Includes the potential use of reserves, segregated assets, and the ability to purchase property using debt.
Ability to purchase property – Build your property portfolio as part of your wealth accumulation strategy.
Ability to pool assets – Members are able to pool assets to do more with their investments.
Speak to your Superannuation adviser to fully understand the benefits of self-managed super or contact us.
This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is suitable for you and your personal circumstances.