There are many benefits to setting up an SMSF. Some of these may include:
- Control – Many clients now wish to have more control of their retirement funds. This might be partly due to the poor performance of many superannuation funds over the past 5 years. An SMSF allows you to micromanage your retirement funds.
- Investing – Australians are becoming much more money savvy than they were a couple of decades ago. We now plan further into the future and are much more educated about investment platforms. Having an SMSF means that you have the ability to direct your funds into investments of your choosing. Some people choose to invest in vintage cars, wine and artwork.
- Fees – in some circumstances, the expenses involved with an SMSF can be much cheaper than fees associated with regular superannuation funds.
It is important to remember that SMSFs are highly and stringently regulated, and serious penalties can apply for contravention of the regulations and that in many cases, it may not be beneficial to you, that you establish an SMSF. You should at all times consult a chartered accountant, financial advisor or solicitor, prior to embarking upon the establishment of an SMSF.