Before opening a self-managed super fund, it’s important to ensure the decision is right for you. Here are some questions you should ask your independent financial advisor to help you make the right choice.
- Does an SMSF give me more investment options?
One of the key benefits of an SMSF is investment control. You can invest your super in similar ways to a standard super fund, but with additional options such as direct residential and commercial property investments, collectibles, term deposits and direct shares.
- Can I borrow to invest through my SMSF?
Yes. SMSF members have the advantage of being able to use their super to purchase large, single assets such as a residential property, which would otherwise be outside of reach. This is one of the best advantages of an SMSF and one of the main reasons people chose to switch over from industry funds.
- Will an SMSF perform better than my current fund?
With standard funds, the performance of your investments is largely out of your hands. A managed fund gives you flexibility and control over your investments, allowing you to change things around if you feel it’s not performing as well as you would like.
- Are there tax advantages?
The flexibility of an SMSF means you have control over contributions, the timing of contributions, allocating earnings to particular members and implementing ‘reserves’ so you can make strategic decisions to help minimise the tax you pay within the fund.
- Will my costs be lower?
In many cases, the cost of having SMSF is lower than alternative public offer super funds, especially when the fund balance is greater than $200,000. Ask the experts at D+M Financials how we can help you lower your costs and get the most from your investments. Contact us today!