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Throughout our working life, one of the most pressing questions we will face is ‘am I building my superannuation balance enough for retirement?’ You know the shape and form of your lifestyle in retirement will depend on how much you build your super during your working years, and how smart you are with your investment choices.

Increasingly people are wanting to take more control over their super and are leaving the larger retail and industry superannuation funds to move their finances into a self-managed super fund (SMSF).

In fact according the Australian Tax Office data there were a total of 534,000 funds as at 30 June 2014, with over $557 billion in investment assets.  Over 60% of all funds are held in the 35-54 year old age group, and 32,484 were set up in 2013/14 alone.

As you can see Self-Managed Superannuation is a very popular alternative for a great number of Australians.

Whilst   SMSF’s are popular for business owners and their families, they are becoming increasingly popular in the wider community.  An SMSF is limited to a maximum of 4 members and is not generally recommended as a cost-effective option if you have less than $250,000 in combined super assets.There are advantages to having a SMSF, including:

  • The control you have over the fund structure and investments
  • Savings on management fees
  • Opportunities to maximise the best use of tax breaks
  • They are transparent
  • You can borrow funds within the SMSF to purchase an investment property

There are, however, also some down sides.  Running an SMSF can be quite time consuming and complex, with the penalties for not complying with the (SMSF) regulations can be quite severe.

While there are many of us that will transfer our assets to an SMSF, there are also many of us that are more suited to a ‘normal’ superannuation fund. Working closely with a financial advisor is the best way to determine the most appropriate option for you.

We offer our clients a comprehensive financial planning service – including comparing the benefits of SMSF vs retail superannuation funds and looking at what offers the best financial return for each individual. This is then taken into consideration as part of an overall financial plan for securing your future financial goals.

If you would like to chat about how this impact your financial goals please call me on 5331 6550 or email [email protected]