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Understanding the Benefits of SMSFs

Experts will tell you that it is never too late to begin saving for your retirement. In Australia, according to the SMSF Association, the SMSF sector controls nearly 30% of people’s superannuation assets.

Here are some benefits of self-managed super funds (SMSFs) that you should be aware of:

Control Your SMSF

It is important to understand that SMSFs are regulated by the Australian Taxation Office. However, trustees can manage their funds. So, if you have an SMSF, you become the trustee and that gives you complete control over the fund. Many funds are managed by large organizations and they utilize the same approach to manage them. However, you do not have to go with these organizations. Instead, you can customize your investment strategy. Make sure you choose the right SMSF accounting software that allows you to diversify your portfolio so that you can meet your retirement goals.  


Enjoy Cost Savings

When your SMSF has a low balance, costs can be high compared to a fund that is regulated by the APRA. However, if your balance grows, you will reach a stage where you will not find the cost of maintaining the SMSF expensive. You can collaborate with accountants in Cleveland QLD who will advise you on investments and figure out the buy/sell spread. It is prudent to remember that the fees to establish and maintain an SMSF are fixed at a flat rate. So, you do not have to worry about high balances. This flat rate reduces the costs of having the superannuation fund. 

Take Advantage of Tax Savings

You can minimize your taxes when you invest in SMSFs. If you are over 60 years, you do not have to pay taxes on your income and capital gains for up to $1.6 million. That means you can withdraw your pension without worrying about paying taxes on it. You can speak to your accountant to find out how you can save taxes leading up to your retirement. There are several strategies that you can employ to reduce taxes and increase your savings. 

Diversify Your Investment

When you are a trustee of an SMSF, you have control over what you invest. Whether you are looking for a business for sale in Redlands or you want to invest in artwork and shares, it is possible to do that through your SMSF. You can choose your own investment strategy so that you reach your retirement goals without hassle. 

In Conclusion

Now you know why you should invest in an SMSF. It is advisable to speak to experienced and qualified accountants, who can help you choose the right fund based on your goals and risk appetite. 

Location: Brisbane QLD, Australia

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