- You choose your own investments
- You choose if and when to buy/sell
- You can react far more swiftly to changes in investment markets as opposed to fund managers
- You can be a more active investor
- You will have a more focussed portfolio individually managed
- You can switch investment advisers, or seek the advice of many
- You have accountability
Access to a greater range of investment opportunities
- These include shares, property, managed funds, collectibles and a range of assets allowed under superannuation legislation.
- SMSF trustees have access to initial public offerings and corporate actions not available to other super vehicles.
- SMSF business owners have the ability to lease their premises (classed as business real property) from their self managed superannuation fund
Relatively low cost
- Many providers offering free establishment
- Annual fees of around $1000 that can be split across up to four members
- Average SMSF fee $2700
There are some aspects of the management of an SMSF that need to be delegated, such as accountancy and audit. You may also require the assistance of an actuary, lawyer or financial planner. Depending on who you choose to partner with and how much of the work you choose to delegate, operating costs for an SMSF can still be far cheaper than the traditional superannuation vehicle. Ultimately though, the compliance of the SMSF is your responsibility.
Typically the necessary services are provided on a fixed fee basis rather than as a percentage of the value of your superannuation benefits, so not only are the costs more predictable, but the larger the account balance, the larger the cost savings of managing your own super.
Rather than waiting for a benefit statement to be mailed to you, in most instances quarterly, this information (and more) can be available to you online, 24/7.
Transferring in private investments
SMSFs have the ability to accept “in specie” contributions which allows a member not only to contribute cash but also other investments they may hold personally such as listed securities and “business real property”.
This potentially allows a member to transfer income generating assets from an environment where the income is potentially taxed at up to 46.5% to one of just 15%.
For individuals that are approaching retirement, the SMSF structure provides the easiest transition from accumulation into flexible income streams. As with many super products, there is no requirement to sell down assets or convert to a different product when commencing a pension.
This enables greater opportunity for SMSF trustees to increase their investment in their SMSF.
This information is provided by SuperGuardian Pty Ltd, AFSL No. 485643. The information is general information only and does not take into account your objectives, financial situation or needs. You should obtain professional advice before acting on any of this information. Please refer to SuperGuardian’s FSG (available at https:// www.superguardian.com.au/pdfs/Financial-Services-Guide.pdf) for contact information and information about any remuneration and associations with product issuers.