A Self Managed Superannuation Fund (SMSF) gives you the opportunity to run your own superannuation fund as an alternative to the Industry or Retail Funds. It is one of the largest and fastest growing super segments in Australia.
Self Managed Superannuation Funds offer you a lot of benefits like
- Greater Control
- Choice of Investments which may not be available with other types of funds like investing in direct property
- Ability to Pool the superfund with family
- Ability to borrow within the fund to buy property
However, SMSF may not be suitable for everyone and it is very important that you seek advice before you decide to set one up. As a Trustee of your superfund you undertake some additional responsibilities. You will be responsible for keeping the fund compliant and ensure it operates as per the legislation. A breach could result in severe monetary penalties or even imprisonment. Sometimes the cost of setting up a SMSF and running could be a lot higher than having an Industry or retail fund.