What is a Self-Managed Superannuation Fund?

A Guide to Self-Managed Superannuation Funds

A self-managed superannuation fund (SMSF) is a type of superannuation fund specifically designed for those wanting to take control of their retirement savings. It's a great way to manage your finances as you get closer to retirement, giving you more control over how your money is invested and how it grows. In this article, we'll discuss the basics of an SMSF and how it can help you build a secure retirement.

How an SMSF Works

An SMSF is a trust structure that allows members to pool their superannuation savings into one fund that is managed by the members themselves. The trustees of an SMSF are responsible for managing the investments in the fund, with each trustee being personally responsible for any legal or financial obligations arising from managing the fund. The main benefit of setting up an SMSF is that it gives members more control over their investment decisions, allowing them to choose where they invest their money. It also allows members to access more tax advantageous strategies than they would be able to in a retail or industry superannuation fund.

The Benefits of an SMSF

There are many benefits associated with setting up an SMSF, including greater flexibility and control over investments, potential tax advantages and cost savings. An SMSF can give you access to more asset classes than other types of funds and allow you to diversify your portfolio across different asset classes such as shares, bonds and property if desired. An SMSF can also provide access to higher performing investments that may not be available through retail funds, giving you the potential for higher returns on your investments in retirement. Additionally, because you are managing your own funds, costs can be kept low compared to some other types of funds as there are no management fees or entry/exit costs associated with running an SMSF.

A self-managed superannuation fund (SMSF) can be a great option for those who want more control over their retirement savings and who want access to asset classes not available through other types of funds. An SMSF provides greater flexibility in terms of investment decisions while also offering potential tax advantages and cost savings when compared to other types of superannuation funds. If you’re looking for a way to build wealth in retirement without sacrificing control or paying high fees then setting up an SMSF could be right for you!