Posted by admin on Nov 3, 2017

Is SMSF the Right Superannuation Fund for You?

In Australia, superannuation is always a big deal, and taking care of it by yourself is a challenge. Working out your self-managed super fund or SMSF gives you control where your super money goes and offers you tons of options. If you’re not aware what it is, or if you don’t know how to get into it, here are simple details about it:

What is SMSF?

The self-managed super fund is a type of financing that allows up to four individuals to combine superannuation funding that will be used towards investments. This is controlled by the Australian Taxation Office and the trustees comprise the members who are providing the funds.

If you get into an asset as a trustee for SMSFs, you can invest in any property that has value in it—it does not matter what it is. From a business property like an office to a funded artwork that is auctioned for millions, you use your funds to make them grow.

Are You Fit for SMSF?

There are a few things that you need to check with yourself when working into an SMSF-based investment. These questions can help you control your future as you see all the great things about the funding itself.

Commitment—Commitment is the first factor. Can you work with a commitment? Value of assets tend to dwindle, and you can be sure that, like any type of investment, an SMSF requires time for the product to ripen properly. It needs your time, effort and patience until such time when you’re ready to sell.

Investment Knowledge—Are you familiar with the ins and outs of investment? Knowing where to lead your money, what to invest in and what assets can easily make your board’s money grow faster and stronger. This can lead to more investments and bigger properties down the line.

Money—The last question is an obvious one: do you have a lot of superannuation money ready to be invested? The bigger your money is, the more products or bigger properties you can invest your finances. SMSF typically requires around 500,000 to 1 million dollars for it to be worth the operating expense ratio.

How much super you are willing to push can make a significant difference because there are a lot of fees and operating expenses that you would need to pay for. There are different costs according to different super fund balances available to you. You can visit SMSF Brisbane and learn more!

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