Benefits of a self managed super fund

The main benefits to having your own self managed super fund (SMSF) include the following.

Control over your investments

A self managed super fund (SMSF) lets you decide where your super is invested. You can decide whether your SMSF invests in shares, government bonds, business property, residential property, cash or even art. This will depend on your investment strategy. Based on current legislation.

Your assets are protected in a SMSF

Assets in a SMSF are protected from bankruptcy and other legal claims - a great relief when unfortunate events occur

Lower tax payable

A self managed super fund enjoys a low rate of tax. The super fund is taxed at a marginal rate of 15% and may be reduced by offsetting other tax credits.

Lower fees

A SMSF may cost less than normal super funds to maintain. However, the initial set up fees may be expensive.

Pay no capital gains tax

A self managed super fund is allowed to control the timing and disposal of assets. This means if you obtain an asset today and it appreciates by a certain percentage by the time you retire, you can transfer it to your complying pension fund and you will not need to pay any tax on the realised capital gain of the asset.

Before you set up a self managed super fund, speak to a financial advisor first to ensure this is the best option for you. Intellichoice Financial Planning has qualified financial planners who can assist you with investment strategies for your self managed super funds. Call 1300 55 10 45 if you would like more information about SMSF and borrowing through a SMSF to buy property.