For individuals seeking to own direct investments within superannuation or gain greater control of their superannuation portfolio, Self Managed Superannuation Funds (SMSFs) can be an attractive alternative.
Self Managed Super Funds (SMSF's) have been the fastest growing sector of superannuation. The number of self managed super funds in operation has grown from less than 100,000 in 1994 to almost 400,000 at June 2008. Self managed super funds have many advantages for investors compared to using a traditional institutionally managed superannuation fund.
Unlike many commercial funds that charge fees as a proportion of your super balance, SMSF fees are generally a fixed amount per annum, which can potentially save money over time as your superannuation grows in size. However, dependent upon your superannuation balance an SMSF may not be the cheapest option available. In some circumstances an SMSF may have difficulty earning enough income from its investments to make this a cost effective option. You should consider whether the benefits of an SMSF outweigh the costs of running one.
Self managed super funds provide you with the opportunity to reduce income tax on investment income and capital gains. They increase the flexibility of investment choices and asset selection and can provide control over your total investment portfolio.
To learn more about how SMSF can work for you, call Signum Business Advisers NOW on 02 9687 2400.