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The sooner you put into place practises to improve your worth when you retire, the more time you have to extract maximum value from your retirement planning efforts.
At the end of the day, all roads should lead to a fulfilling retirement. One popular vehicle travelling along those roads is the Self-Managed Super Fund (SMSF).
While not everyone will want to set up one of these trusts, it may be worth your while to take a look at some of the many benefits they offer, including:
1. Control: The fund assets are controlled by the trustees, who are also the members. The trustees are responsible for all decisions.
2. Family: Up to four members of your family can participate in the fund and reap the rewards.
3. Security: An SMSF offers the most flexible option for taking your benefits in retirement, whether as a lump sum or as a pension.
4. Choice: The trustees have absolute discretion regarding the choice and mode of investment. However, you need to manage your fund’s investments in the best interests of its members and in accordance with the law. Investments must be separate from the personal and business affairs of fund members, including yourself.
5. Taxation: An SMSF enjoys the lowest rate of tax of any entity structure in Australia. The fund pays a maximum 15 percent tax rate which may be reduced by tax credits.
6. Fees: The SMSF fee structure may deliver substantial savings when compared with other retail superannuation funds.
7. Flexibility: Trustees have the flexibility to make decisions with respect to changing market movements and options for retirement income streams.
8. Protection: The fund assets of a member are generally protected from creditors in the event of bankruptcy.
With so many superannuation options available in the market, consult with us to discuss your individual needs.
The minimum lead time to set up your SMSF is two years out from your retirement date, so the sooner you act, the better. Keep in mind that this is general advice only and may not suit your particular circumstances. We can advise your before proceeding.