Many Australians disregard the possibility of maintaining a self-managed super fund based on the thinking that they don’t have retirement saving or just because they think it’s too complicated. But the reality is, self employed super contributions have their perks that are not available to people who get their pay checks from somebody else. Depending on the type of business you run, SMSF can own a property relating to how you make your money.
For example, a coffee bar owner can pay rent directly into the SMSF and if he decides to sell the business, the profit will stay within the fund and have a great capital gain tax rate. Modern marketing is trying to persuade people that self employed super contributions are exclusively for rich people that have large sums of money. This marketing trick can hit people who own small businesses and have been hesitant to get into superannuation funds over the years.
In fact, almost every Australian can have a super fund. Even if you’re just getting into one, you can still make it be flexible and work for you. As balance in the fund grows, the costs will decline, making it more economical and worthy over time. The other thing that makes this worthy is that you can combine it with a partner and reach the goal easier. Buying the property that your business operates on is an advisable choice.
Nevertheless, there are still many obstacles you need to be certain you can conquer if you decide to open up your own super self-managed fund. It comes with great responsibilities in terms of decision making, and trustees will need to make sure they meet all the standards and rules, as well as file annual tax returns for the super fund.
You almost never have to manage all the responsibilities on your own. There are professionals such as accountants and advisers who can be of assistance every step along the way. However, those advisers and accountants will cost you a good chunk of money, but you will probably only need them in the first few years until you gain the confidence and understanding to run it efficiently by yourself.
Whether you are interested in managing your own super fund or are self employed, a self-managed super fund is worth considering due to the vast investment options it offers for both you and your employees (if you have any).