Super Fund Alternatives

There are great advantages and benefits to using an SMSF instead of a managed super fund.

Taking Control
SMSF allows you to take full control of your financial decisions. You decide where your funds are invested. It does not matter if you have stocks, bonds, cash or property. You make the decision on how much you invest. You decide if you will move the investments around as the market changes.

Lower Payable Tax
A great benefit of Superannuation is that you can make an additional payment to yourself. Superannuation is charged a 15% tax on contributions, earnings and also on the final payment of the fund. Making this payment to yourself over the life of the loan can save you thousands in taxable income. Lower taxes are always a win.
For all self managed super funds there is no worry of bankruptcy or other legal claims. They are protected against these. Your investments are safe from these legal nightmares.

Lower Fees
Probably the greatest benefit is the lower cost of fees it offers its trustees. Super Trust funds charge their annual fees based on how much you have in your account. The more you have the more it costs you. Not only do these fees increase as you build capital but they are calculated on a sliding scale costing you even more. A self fee only requires a flat fee payment that does not increase as your money increases.

Other Benefits
* Self managed super funds allow you to control the timing and dispersal of your assets. For example if you acquire an asset today and it appreciates by a certain percentage when you reach your retirement, you can transfer it to your complying pension fund and you will pay absolutely no tax on the realized capital gain of said asset.
* SMSF’s also allows for tax-deductible insurance premiums.
*SMSF’s call for no minimum contribution. There is no limit on the regularity of the contributions to the fund.
If you do meet the requirements for this fund then there is a huge range of benefits to be gained by it.