Planning for the future is increasingly becoming more important given the present economic conditions. The ageing population in Australia is expanding, and life expectancy is becoming longer which compels us to be forwarding thinking and make practical investments. When individuals begin working, they begin contemplating participating in a superannuation fund. This has brought the spotlight on the rising popularity of Self-Managed Superannuation as another option aside from retail or industry funds.
Why is Self-Managed Superannuation so popular? There are many reasons why, but there are a few that stand out, including:
- Superannuation gives a sense of self-empowerment. There are various positive benefits to being in control of your own retirement fund. It gives you the power to choose which investment to purchase, particularly with real estate, and to take out a loan (gear) for asset acquisition.
- Do you own a small business? If you are an owner of a commercial property purchased in your super fund, your business can lease the property and you earn rental income for yourself in the process. This has the extra benefit of constantly having an excellent renter!
- SMSF can be cost-effective, depending on the fund’s balance. The management expenses, like accounting charges of SMSF, don’t automatically go up with the value of the fund. In comparison, the management expenses of the majority of retail and industry funds increase according to a percentage of fund balance.
You can save for your retirement through SMSF. It is very vital that they are established correctly and conform to law. The Australian Taxation Office recommends considering professional advice when establishing or managing a SMSF.
Things like determining your fund’s structure and guaranteeing the stress-free management of your fund are just two reasons why getting professional help is helpful in maximising the fund members’ interests and in guaranteeing conformity to the laws that apply to SMSFs.
PJS Accountants work with clients to give professional SMSF advice. We offer assistance in setting up SMSF and we guide you in the right direction relating to matters such as contributions and rollovers, pay benefits, investing, winding up, and subsequent management and reporting to ascertain compliance. For more information, contact PJS Accountants.