The Advantages of Your Own SMSF
There are numerous advantages to having your own SMSF and most SMSF members state that having direct control of all investment decisions is the most important. The major advantages of your own SMSF include the following:
- Virtually unlimited investment opportunities and not being restricted to a “menu of investments”, provided by an institutional super fund.
- Complete visibility of your investment portfolio – you can see every investment, good and bad.
- The ability to choose investments suited to your needs and personal risk profile.
- The opportunity to structure your investments in order to reduce income tax on investment income and capital gains tax.
- The ability to have up to 4 members in the fund, allowing the pooling of resources of other family members with similar financial objectives.
- Provide maximum flexibility in relation to retirement income streams, including “transition to retirement”, pensions, age based pensions and fixed term pensions.
- Structuring your superannuation fund in order to maximise any Centrelink age pension benefits.
- The ability to transfer personally-owned shares and other investment assets directly into your SMSF.
- The ability to borrow in order to purchase larger assets, usually real estate.
- The ability to own your own business property inside your SMSF.
- Direct ownership: all investments are owned directly by the trustees (on behalf of the fund members), giving you a greater sense of being in the “driver’s seat”. Your investment assets are not owned by another third party.
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