Take Control of Your Superannuation
If you want to take control of your superannuation or allocated pension, then the setting up of your own superannuation fund could represent an attractive alternative.
With your own fund, you make all the investment and asset allocation decisions. This compares with the traditional superannuation funds where you have no or minimal control over your investments.
Benefits of Your Own Superannuation Fund
- Control over what investments are made
- Flexibility in deciding when to buy the investments
- Ability to assess all the benefits of the new superannuation rules starting from the 1st July 2007
- Can be cheaper than managed funds, if you have more than $200,000 to invest
- The fund can purchase residential real estate itself or in partnership with you
- The fund can purchase your business premises
- Provides asset protection as amounts held within superannuation up to pension RBL cannot be assessed by the trustee in bankruptcy
- Allocated and complying pensions can be paid from the fund
Disadvantages of Your Own Superannuation Fund
- Additional paperwork.
- Statutory regulations apply to trustees to ensure the fund is operated within government guidelines.
- Time is needed to make and implement investment decisions.
It should be noted that in a recent study, 87% of people who had their own Self Managed Superannuation Fund felt that running their fund was easy or very easy.
The question of whether you can “do it better” than the professional superannuation fund managers, is something only time will tell, but for many investors who have experienced high fees and no control over the investments purchased, they are willing to try.
For an obligation free interview to discuss if a self-managed superannuation fund could suit you, please call Gregory Enright at Enright Superannuation Accountants today on 6686 4744.