Benefits of SMSF
The benefits of a SMSF are as follows:
Control
The trustees decide the investment plan of the fund and choose how and when the assets of the fund will be invested and in what the assets will be invested.
Flexibility
The investments of the fund can be adopted to meet the particular needs of the members before and after retirement.
Choice of Investment
SMSF with some limitations can normally be invested in a wide range of investments like investment properties, direct Australian and international shares and direct fixed interest.
Longevity
SMSF has an indefinite duration and can continue to give future benefits to the members and their dependants, conditional on relevant super fund laws.
Contributions
SMSF with some restrictions can receive personal, employer and spouse contribution, eligible termination payments and superannuation guarantee vouchers. A member can often transfer assets held in their name into the SMSF instead of cash payment.
Saving the Cost
A SMSF can provide cost savings as compared to other kinds of super fund depending on individual circumstances.
There are certain advantages of self managed fund, SMSF. It gives you more control over your investments and provides an extensive selection of assets where you can invest. However, its main purpose is to provide you capital at the time of your retirement and therefore you cannot utilize the assets in the fund for your present needs.
In spite of all the advantages of setting up an SMSF, it is not the right choice for everyone. If the amount in your super fund is less than $200,000, then possibly the administrative charges will make the project too expensive. On top of establishment cost, it can be presumed that you will pay about $1000 to $1500 yearly to supervise your fund.
