Have you ever pondered the idea of taking a more active role in your future and setting up a self-managed super fund (SMSF)? As our needs change, we have seen more and more people taking control of their retirement strategy and making their own investment decisions by setting up a SMSF. But many are still apprehensive, so let us debunk some of the myths surrounding SMSF and look at the considerations for setting one up.
MYTH 1 SMSFS ARE ONLY FOR RETIREES
Like most investment strategies, many of the most successful SMSF members start well before retiring
age. SMSF members have complete control over their investments and can tailor their investment strategy to meet their specific financial goals. The earlier you can start planning for retirement, the better position you will be in when the time arrives.
MYTH 2 SMSFS ARE ONLY FOR THE RICH
It is often believed that SMSFs are only beneficial to those who have a balance of more than $1 mil. This
not the case. SMSFs are more flexible and offer a range of investment options, providing members with
greater flexibility to invest in a diverse range of assets, such as shares, property, and bonds.
MYTH 3 SMSFS ARE EXPENSIVE
SMSFs can be more cost-effective than retail or industry funds, as members can minimise costs
by making their own investment decisions and administering the fund themselves. SMSFs may also
receive tax benefits, including a lower tax rate on contributions and investment earnings, and the ability
to access tax-free pension income.
MYTH 4 SMSFS ARE VERY COMPLICATED
There is perhaps more truth to this “myth” than the others, but that’s what professionals are for. While
SMSF members have complete control over their investments and can tailor their investment strategy
to meet their specific financial goals, this may seem too daunting for some. That’s why SMSF members
can seek professional advice on their investments and overall financial strategy.
GETTING YOUR SMSF STARTED
By actively managing their own financial future, SMSF members can have peace of mind and a greater sense of control over their retirement savings. All in all, with the correct guidance from an advice team, a SMSF is an invaluable asset to the retiree and those approaching retirement.
If you would like to discuss your superannuation and how Morgans Financial can assist with SMSF solutions, contact us on 07 4725 5787 or email .
Disclaimer: This is general advice only and is made without consideration of an individual’s relevant personal circumstances.
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