Self Managed Super Fund, or also known as SMSF, is a popular option among Australians; many of them also consider this as one of their biggest investments. It is a trust where money and investments are held and managed on behalf of the members. The purpose of the fund is to provide benefits to members on retirement or death.
And since it is one of majority of Australian’s biggest investments, most people keep their super money in professionally managed super funds. The growth in SMSFs over the past decade has been phenomenal.
Australians have been changing to SMSFs for many reasons. This type of investment gives people control over their super, provide greater investment flexibility and are a perfect medium to implement tax-planning strategies that take advantage of tax concessions afforded to superannuation savings in Australia. Importantly, the costs of running an SMSF are often lower than the fees charged under other superannuation solutions.
However, just like any other forms of investment, you need to do some research and evaluate your current financial goals before investing in SMSF. You also need to know and understand your obligations.
Accessing the super in your SMSF to pay benefits is generally only allowed when a member reaches what’s called their ‘preservation age’ and meets one of the specified conditions of release. Read more about SMSF at: https://www.moneysmart.gov.au/superannuation-and-retirement/is-your-super-on-target/get-to-know-your-super
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