Demystifying
Self Managed Super Funds

An SMSF is a Self Managed Super Fund. It’s a private superannuation fund run by yourself and between 2 and 6 members, typically family.

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Unlike traditional super funds, where large super companies and fund managers make investment choices on your behalf, SMSFs are sometimes called DIY Super. You are in the driver’s seat with control over where and how your money is invested.

 

A Self Managed Super Fund (SMSF) is a powerful financial tool that allows individuals to make informed choices about where their money is invested and self-manage their retirement savings.

How Does An SMSF Work?

You may have heard of self-managed super, but wondered how does an SMSF work? We delve into more detail in our online Guide to SMSF below, but in a nutshell, it involves setting up a trust structure where you and other members (up to six) are the trustees. Rise Accountants, can assist with the SMSF setup process.

The beauty of an Australian SMSF is flexibility and diversification. You and your members can invest in various asset classes, including residential and commercial property, shares, bonds, cash, collectibles and managed funds.

 

The ability to diversify your investment portfolio, can potentially lead to higher returns compared to traditional superannuation plans. 

Key Benefits of Self Managed Super Funds

Control & Transparency:

Members can choose their own investment strategies based on their risk appetite and financial circumstances.

Flexibility & Diversification:

SMSFs can invest across a wide range of options, including shares, property, cash, and collectibles.

Tax & Cost Benefits:

SMSFs often benefit from cost savings and lower tax rates on investment earnings compared to personal income tax rates, which can enhance your retirement savings over time.

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Assistance With Planning For Retirement In Australia

With the right knowledge and commitment, managing your own fund can lead to significant long-term benefits. However, these benefits also come with the added responsibility of ensuring compliance. An SMSF must adhere to the Superannuation Industry (Supervision) Act 1993 and meet the regulatory requirements set by the Australian Taxation Office (ATO). 

You and the other trustees are responsible for your investment choices, but managing your own fund doesn’t mean you’re entirely on your own; you will have the help of trusted SMSF accountants - Rise Accountants - to ensure your fund meets these compliance requirements.

Book A Complimentary 15 Minute Discovery Call

The information above only scratches the surface. If you're looking for a way to maximize your retirement potential while enjoying the freedom of managing your own investments, contact us for a confidential discussion or book a free 15 minute Discovery Call at a time that suits you.