Do you know how much money you have in your super? Do you know what your superfund does with your money or where it’s being invested to benefit you? For a lot of people, the answer is no. Superannuation tends to be something we ‘set and forget’, but the truth is, ensuring your super is working for you is important andit’s something you will be grateful for in your later years.
One of the best ways to increase your super is to set up a self-managed superfund or an SMSF. When you change from a standard super fund to and SMSF, you are essentially taking control of your super and deciding where to invest it, rather than leaving it up to your fund. An SMSF gives you complete control, flexibility and investment choice, making SMSF’s an increasingly more popular choice.
So, what can you do with your SMSF? Where can you invest? The great part about choosing an SMSF is that you can invest in almost anything you, as an individual can. This includes things like shares, term deposits, bonds, residential property, commercial property, private unit funds, non-traditional assets (coins, antiques, art etc.), just to name a few. It’s completely up to you where you invest.
Investing in property is a popular choice for using an SMSF as the return on investment one of the most profitable. Of course, there are very strict laws surrounding your investment choices for super so your SMSF property must be solely for investment and not personal use.
With great power comes great responsibility and managing your own SMSF requires more work than using a standard fund. Make sure you seek independent financial advice from a financial adviser before deciding. Our team in Berwick can help, contact us today!