Having a Self-Managed Super Fund (SMSF) in Australia

Self-Managed Super Funds (SMSFs) have become increasingly popular in Australia, offering individuals greater control over their retirement savings. One of the primary advantages of an SMSF is the flexibility it provides in investment choices. Unlike traditional superannuation funds, SMSF trustees can invest in a wider range of assets, including direct property, collectibles, and even unlisted securities. This freedom allows investors to tailor their portfolio to their specific needs and risk tolerance, potentially leading to better returns and a more personalized approach to wealth accumulation.

Another significant benefit of SMSFs is the potential for cost savings, especially for those with larger superannuation balances. While there are setup and ongoing administration costs associated with running an SMSF, these can often be lower than the fees charged by retail or industry super funds for high-balance accounts. Additionally, SMSFs offer greater control over the timing of buying and selling assets, which can lead to more tax-efficient strategies and potentially lower overall tax liabilities.

Lastly, SMSFs provide a level of transparency and engagement that is often lacking in traditional superannuation arrangements. Trustees have direct access to real-time information about their investments and can make informed decisions quickly. This hands-on approach can lead to a better understanding of one's financial position and foster a more active role in planning for retirement. Furthermore, SMSFs allow for easier estate planning, as they offer more flexibility in how benefits are paid out to beneficiaries upon the member's death.

As always seek legal and financial advice.

This information has been prepared by PHA Financial Services and does not take into account your objectives, financial situation or needs. Before acting on this information you should consider whether it is appropriate to your situation. We recommend you obtain financial, legal and taxation advice before making any financial investment decision. The information provided was accurate at the time of publication and changes in circumstances after a document is published may impact on the accuracy of information. Some information may have been collated from various third parties and we make no assertion that the information was originally ours.