Although you may not realise it, your accountant has many aspects to their job other than simply filling out tax returns for people too lazy to do their own. One of the other major things that an accountant’s job can involve is the management of a client’s super and super funds. With a lot more people deciding to use self-managed super funds (SMSFs), a large proportion of accountants are becoming familiar with the setting up and running of these.
What is a self-managed super fund?
A self-managed super fund is really very similar to a normal super fund. The main difference is that instead of another body (the super company) deciding where you should invest your super, you can make investment decisions on your own. You can choose to invest your super in anything from property to shares to commodities. SMSFs are a great choice for people who are experienced when it comes to investing and who believe that they can get better returns than their currents super fund managers.
Why would I set up a self-managed super fund?
Setting up a SMSF is a huge choice that requires significant financial and time commitments. However, more and more people are deciding to do so every year to get away from some of the problems associated with traditional super fund management companies. Some of the benefits of setting up a self-managed super fund include:
It will cost you less – Although you may not realise it, super management costs are often around 1% per annum. This may not seem a lot, and indeed, it won’t be while you are young, but it could add up to over $500000 over the course of your lifetime. This number alone suggests that it could be a good idea to move to a SMSF!
It will give you control – Are you sick of having your super suffer at the hands of a management agency? If so, then you should consider using a SMSF. Doing so will give you complete control over how you invest your super, how you withdraw it, and what you do with it.
It allows you to consolidate your assets – In many cases, a SMSF can be a great way to maximise your tax benefits when it comes to your assets. Transferring personal assets to a SMSF can have large tax ramifications, and can help you get all your assets together under one entity.
If you have significant amounts of super invested through a super fund management company, then it is definitely worth looking into a self-managed super fund. Invest your money where you would like to see it invested, and reap the benefits. If you would like to talk about setting up your fund, come in and talk to our team at Accountants Australia today!