Taking a more proactive approach to retirement planning and superannuation strategies is the option of self managed super funds (SMSF). Of course, just like all investment strategies, it is important to understand how SMSF works and whether you have the time and financial skills to manage it.
When you set up an SMSF you become a trustee of that fund, which means you will be managing the fund and making investment decisions, in accordance with its deed and relevant regulations and superannuation law.
Essentially, SMSFs are set up with the sole purpose of providing financial retirement benefits for its members and their dependents. SMSFs are for long term strategies, they can’t be used to purchase current and everyday items like holidays or cars.
SMSF - What's involved with an SMSF
Understanding the costs involved in SMSFs is an important consideration, as they can be more than you would incur with a general superannuation scheme, such as;
The key benefits of SMSFs are,
However, on the flipside, awareness of the challenges is important,
High costs (for low super balances).
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