SMSF (Self Managed Superannuation Funds) is one of the most preferred investment options for most people in Australia. So, what is it all about? Read the article to know some of its major advantages as well as disadvantages.

1. SMSF in a Nutshell
SMSF Pros and Cons that will help
you take an informed decision

2. What is it all about?
Self Managed Superannuation Funds
is one of the most preferred
investment options for most people in
Australia. So, what is it all about?
Read the article to know some of its
major advantages as well as
disadvantages.

3. SMSF Setup and Audit Services
Superannuation fund is an arrangement
for long term savings. Mostly aimed at
retirees, it enables people to contribute to
a fund. This fund is open to employees,
self-employed people among others and
provides numerous benefits to the
members of this trust and on certain
conditions, the government taxes these
savings at lower rates.

4. SMSF Setup and Audit Services
This same superannuation fund becomes
SMSF (Self Managed Super Fund) under
certain criteria. For instance, it has to
have less than five members and each
individual trustee is a fund member.
These criteria are no deterrent to peoples
and they keep on investing in it for
numerous advantages provided.

5. SMSF Setup and Audit Services

6. (SELF MANAGED SUPER FUND)
Advantages of SMSF

7. Complete control over the fund
The investor has full control over the
fund’s investments. For instance, he can
invest the fund in various assets such as
real estate, shares and even bank
deposits. However, he must strategize his
investment properly and steer it in the
right direction.

8. SMSF Setup and Audit Services

9. Continues after death
Setting up a SMSF not only benefits you,
but your entire family as well. In the event
of your death, the fund continues to give
the same benefits to your partner and
children. They can either let it be as it is or
even plan to invest it somewhere else.

10. Flexibility in the rules
As an investor, you get to decide the rules
of the fund and how it should operate to a
certain extent. For instance, you can
restrict the payment terms. This control
over the fund’s operation is one of its
major benefits.

11. SMSF Setup and Audit Services

12. A cost-effective option
The overall cost of a self super fund does
not increase with the growth in your
investment in it. This obviously means that
more the account balance you have, the
more cost-effective your fund will be.
Moreover, it must be noted that they do
not need to be licensed, which also saves
a few bucks.

13. Concessions on tax
As mentioned earlier, a SMSF allows the
investor to get tax concessions under
certain terms and conditions. For
instance, you can get a deferral of lump
sum tax , when the investment is in the
pension phase.

14. So, these were some of the major
advantages provided by a self managed
super fund. But then, every coin has two
sides. Likewise, a Self Managed Super
Fund also comes with its share of
disadvantages.

15. (SELF MANAGED SUPER FUND)
Disadvantages of SMSF

16. Taking responsibility
As a trustee of the fund or the director of
a corporate trustee, it is you who will be
responsible for the overall administration,
investment and other pivotal issues
related to the fund.

17. SMSF Setup and Audit Services

18. Can be expensive
Smaller SMSF funds will incur more SMSF
administration costs and can be pretty
expensive to maintain. Moreover, setting
up a SMSF with initial set up costs can
vary and go up.

19. Time consuming
To manage a self super fund, you need to
put in a lot of your time and efforts. This is
not possible for many.

20. To sum it all up
These were some of the advantages and
disadvantages of a Self Managed Super
Fund, which must have given you a heads
up. However, it is advisable that you
consult an investment expert or seek help
from a professional SMSF company.
Good luck!

21. Contact iCare SMSF
iCare Super
Level 1, 1 Oxley Road
HAWTHORN VIC 3122
Australia
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Website: http://www.icaresmsf.com.au/
Blog: http://smsfaudit.blogspot.com.au/