Reasons to manage your own Super Fund

There are a number of benefits to having a self-managed super fund. Whether you should have one or not depends on several factors largely related to the amount of finances that you have available to allocate for a particular investment and whether or not you have the discipline and motivation to manage such a delicate process on your own. Your best option would be to consult one of several accountants in Adelaide so they can advise you if self-managing an SMSF account is right for you.

The main advantage of an SMSF account is that you will have complete control over the investments of your particular funds. This however will mean that you will be required to maintain it using a variety of financial strategies. You will be the sole reason for the fund’s success or failure. So this advantage can quickly turn into a disadvantage.

You will also have greater flexibility when it comes to modifying or switching the assets, investing shares, banks deposits, pooled investments and other managed funds. This option over the type of operation you use to manage your super fund gives you a level of control on how you operate the fund. For example, say that you have created a super fund or several super funds for your children but they are either too young or too immature. You can actually stipulate the conditions with which your children can have access to those funds. The same rule can apply if you’re granting a business partner access but you aren’t sure you want to give them full control of the funds. You and only you can make the rules.

Some SMSF managers find that it’s easier to pool their resources with one or even 4 other fund members who have financial goals similar to their own. This creates greater stability and decreases the chance of failure.

In the event that you are disabled or pass away, the super fund can continue to provide benefits to you, your spouse and children.

Another reason why you should consider self-managing your super funds is that it’s cost saving. This is especially beneficial if the account balance on your fund is high because the cost of managing it will be minimal in comparison of when you let an accountant or other financial advisor do the managing for you. Another advantage is that you won’t have to adhere to certain regulations such as requiring a license or becoming a registered SMSF auditor.

During the pension phase, your super fund can provide tax concessions that will allow you to use credits from dividends in order to reduce the amount of taxes you will have to pay. There’s no greater advantage than tax concession but you must be knowledgeable of the tax laws to avoid issues down the line.

Not only will you, with a SMSF have more control over your investments, you will also gain greater investment flexibility, and lower fees than industry and retail funds. SMSFs can adjust their fund portfolios as they see fit, especially in today’s fluctuating market which requires constant adjustments to ensure that funds don’t drop as a result of a poor investment tactic.

Request a fitting
  • Hidden
  • This field is for validation purposes and should be left unchanged.