With all the discussion and speculation about changes to superannuation in the forthcoming budget, we discuss the Facts about SMSF Funds. The subject of SMSF’s comes up in conversations quite often. Remember any changes that may come about will apply to all superannuation entities so these should not have a major influence on the type of fund you choose to be in.
So, the question arises – what type of fund is right for you to be in?
Many people think SMSF are only for older and wealthy investors. However, the facts show that 43.9% of the newly created SMSFs in 2015 March quarter were established by people aged under 45. Of these new accounts, 42.8% of these newly created SMSFs were created by clients earning between $40,000 and $100,000 per year.
So, regardless of what your age, or your annual earnings are, a SMSF may be something worth considering. There are some things you should consider before you set up an SMSF:
Before you make any financial decision, you need to ensure that you get the right advice to ascertain whether this is a good fit for you. The process can seem a bit daunting so you want to make sure that you understand it in its entirety before going down this path.
Many people choose to set up an SMSF trustees because they want to control what investments that their superannuation money undertakes. Being a trustee brings a raft of responsibilities so need to understand what these are so as to ensure your fund remains compliant as well as making sound investment decisions so you grow your retirement nest-egg to achieve your long term objectives. Speak to your accountant or financial advisor about your role, your obligations and responsibilities make sure that this is the right option for you.
Also read: Saving for your retirement to gain some more insight into Facts about SMSF Funds