It is important for everyone to think proactively regarding their retirement plans as various options do exist – some of which are better than others. While performance of your fund is paramount, other factors are important as well, such as fund management fees, how much control you may have, investment options, tax consequences, etc. When thinking about your retirement fund, consider the following when deciding whether a self-managed superannuation fund is better for you.
When it comes to fees, we think that fees are negligible; however, over the long-term fees can actually add up to be quite significant. Consider that a retail superannuation fund fees are not fixed, but rather vary. They are typically a percentage of your account balance, whereas a self-managed superannuation fund fee is typically fixed. Choosing a self-managed fund can add up to quite a sizeable savings in fees over the long term.
Do you wish to have more control over the fund’s investment decisions? Consider that a self-managed superannuation fund’s members are deemed trustees and have say in the fund’s management. This differs from a retail superannuation fund that is managed actively by third party advisors. Having this control, trustees are more likely to have more varied choices as well when it comes to investments since they have a say in decision-making.
Do you have special tax requirements? A self-managed superannuation may allow for the fund to be more tailored tax-wise to the needs of its trustees. This offers significant advantages to those who may have substantial capital gains or losses to deal with. The retail superannuation fund may not necessarily offer the same custom-tailored approach.
Most retail funds are restricted in what they can hold. With a self-managed superannuation, trustees can opt to invest in real property, including businesses. This option is not typically available to those invested in a retail fund.
Are you seeking flexibility? For those who want to be able to hold various types of insurance, a self-managed superannuation can offer a lot of flexibility. These types of funds can typically hold disability, permanent disability and life insurance policies with no problem.
Self-managed superannuation funds are great for individuals and families who desire flexibility as well as affordability. While retail superannuation funds take away a lot of the responsibility of day-to-day decision making that most people would shy away from, there are quite a few benefits to looking into self-managed funds. AVB’s Self Managed Superannuation Team are highly qualified individuals who can help you manage your superannuation fund, and work out options that best work for you and your family. With a ton of self-managed funds on the market, our Specialists will also be helpful in narrowing down what is the best fit, and how to avoid the pitfalls of investing.
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Brisbane Small Business Accountants & Trainers Odile Mignot and Rebecca McConachy from AVB publish the popular “My Business Success Newsletter” a monthly ezine with over 2500+ including solo-preneurs, entrepreneurs and business owners.