Should you have a Self Managed Super Fund (SMSF)?!
Over the last few years, there has been a huge increase in the number of people who have opted for a self managed super fund (SMSF).
What is a self managed super fund?
A self managed super fund is a superannuation fund that somebody both runs and is a member of. In other words, the members decide where their super money is invested, meaning they have more control. These funds are sometimes referred to as DIY.
Do self managed super funds perform well?
Self managed super funds are now outperforming other types of superannuation funds, according to a new analysis of the $750 billion sector published in the Australian Financial Review “DIY Super Beats the Big Funds”. Self Managed Super Funds returned an average of 10.2% compared to 9.1% for retail and industry funds regulated by the Australian Prudential Regulatory Authority (2016-17). There are about 600,000 Self Managed Super Funds with an average balance of $1.2 million, according to a review of ATO data over 2016-17. SMSF may be performing even better than stated – an industry body has been established to investigate.
Benefits of self managed super funds?
Once in retirement, there are the following benefits to having a self managed super fund:
- There’s no capital gains tax
- No income tax on rentals
- Your property portfolio is completely self-sufficient and does not impact your day to day life.
- You know where your money is going and have more control over your savings and investments
- SMSF outperform other types of funds.
Don’t I need to be rich to have a SMSF?
There is a common misconception that you need to have at least $250k in your super fund to self manage. Clients are absolutely mind blown when we tell them 130k in your super is more than enough to start your dream property portfolio. An AllianceCorp client bought property using his Self Managed Super Fund that only had $130k in it.
We work with financial planners and our finance team to enable you to invest through a Self Managed Super Fund with as little as 130,000 in your super fund.
What sort of people own SMSF?
A SMSF could be suitable for you if you have $130k in your super. Recent data has shown two significant changes in SMSF: Females are now the biggest contributors to Self Managed Super Funds. There is speculation that this could be due to growing awareness of the “superannuation gender gap”. Younger investors have also been shifting to Self Managed Super Funds.
How do I start a SMSF?
We have put together some special superannuation resources for you including, a video from AllianceCorp Managing Director, Jason Paetow.
Jason went from humble beginnings to a 30 year-old multi-millionaire, thanks to a large property portfolio. In this superannuation video, he shares his expert advice on how you can invest through your super fund.
The Australian Taxation Office data shows: The older a fund is, the greater the SMSF returns. Access our FREE ebook, ‘How to unlock your super with a SMSF’ now and get more control over your financial future.