Investing in a SMSF fund is the fastest growing assets saving trend among Australians. In fact, it is estimated that there are more than half million SMSF funds established in Australia. If you are new to this you might think that there must be good reasons behind that significant number. Yes, there are many reasons, or more specifically, benefits of using an SMSF, due to which this way of saving for retirement has become the second largest family asset after the family home. Here are some benefits of using an SMSF, which make this fund worth considering as a reliable saving option.
Increased Control Over the Invested Assets
Unlike for many other pension funds where you don’t have clear visibility of your savings for retirement, when you use a SMSF you have the full control and visibility over your savings. You can manage your self superannuation super fund and decide how would you like to invest the assets you save.
Borrowing
Although in the past it was almost impossible to borrow money from the SMSF fund, today there are certain rules listed by the Australian Taxation Office, under which you can borrow money from your superannuation fund. However, when it comes to borrowing money the options are quite limited, and it is obtainable only under certain type of arrangement.
Affordable Managing Costs
One of the main concern of the potential users of this type of fund are the SMSF costs. Many financial advisers would say that the SMSF costs are in most cases and under many circumstances, significantly lower than the costs for managing any other fund for retirement. One of the main advantage of the SMSF is that the costs are almost fixed and are not related to the growth of the fund. Moreover, there is a possibility for you to cut costs as your fund’s balances grow, meaning that the you will have to pay almost the same annual costs for your larger balance as you used to pay when they were significantly lower.
Investment Options
You can use your SMSF financial assets to make investments that will potentially generate additional income and in that way increase your savings. For instance, if your balance is large enough, you can invest in a property. You won’t be allowed to use the property for you personally, but you can lease for a commercial purpose and invest the received assets in your fund.