Many of us have a tendency to ignore our super or forget about it completely. With everything else that is going on in our lives on a daily basis, it’s easy to understand why superannuation gets pushed to the back of our minds. But, did you know that for many Australians, superannuation will grow to be their biggest, long-term investment? It largely determines how a person will live throughout their retirement, whether or not they will have to rely on the aged pension or if they can rest easy knowing they have enough super to carry them through.
When you consider that your super has this kind of impact on your life over many, many years, being smart about where your money is invested could not be more important.
The growth in SMSF’s has been staggering and SMSF’s are now the single largest Superannuation sector in Australia with well over 1 million members and over $700 Billion in assets. The remaining superannuation is controlled by professional managers in retail or industry funds. Sure, that works for a lot of people just fine but the question is, is that super performing as well as it could be? The simple fact is when your hard-earned money is controlled by someone else, you don’t have the power to decide how well it performs, where it is going and what your investment strategy is. This is why more and more people are choosing to open self-managed super funds to take control of their super and make smarter investment choices.
SMSF’s can also be much cheaper to run, especially when the balance reaches $200K or more. Comparatively, retail and industry funds may be cheaper for lower balances, but because of their fee structure become much more expensive for larger balances. When you work with an expert, independent financial planner who specializes in SMSF’s, you have greater ability to lower costs, plan a smart investment strategy and do more with your super.
Based in Melbourne and servicing the Greater Melbourne area, contact D&M Financial Services for expert SMSF advice.