A self-managed super fund is built to give you a comfortable retirement, with concessional tax and a wide choice of investments along the way. Many members don't make full use of what their fund can do. Here are the main benefits, and how professional help can get more from each.
1. Control over your long-term goals
An SMSF puts you in charge of how your retirement savings are invested. Within the rules, the fund can hold assets such as shares, fixed interest, property, cash and other listed investments. Trustees who lack investment knowledge often miss out on this, which is where a licensed financial adviser can help.
2. A planned retirement income
Once members retire, the fund can pay them an account-based pension. Each year the fund must pay at least the minimum amount the law sets, and members can usually take more when they need it. Planning that income well takes thought, and professional advice makes it easier.
3. Savings that build
Contributions and investment returns build the fund over the years. Good records and accounts, prepared and audited every year, let you see exactly where the fund stands.
4. Concessional tax
A complying SMSF pays tax at concessional rates on its income, and in the retirement phase the tax can be lower still. To keep those concessions, the fund must follow the rules, be audited each year and lodge its SMSF annual return.
5. A wide choice of investments
You can invest directly, without a fund manager, across many kinds of assets. An approved SMSF auditor checks each year that the fund has followed the law, which protects that freedom for the years ahead.
If you're a trustee, your accountant or financial planner can help you make the most of your fund.