There are so many benefits to having a Self Managed Super Fund (SMSF) with one of the primary benefits being greater control. When you become an SMSF trustee, you are in control of how you run the fund and where you invest your money.
More control over costs
As a trustee, you may have more control over the expenses incurred in reaching your retirement savings goal. For example, if you choose to hold insurance inside your super, the level and type of insurance you take out may impact the end balance of your SMSF, as the premiums you pay are generally taken directly from your super account. Insurance may be more than a one size fits all, group offering, so you may have the ability with a Self Managed Super Fund to choose a product that fits within your budget and meets your retirement goals.
More control over pensions
With a Self Managed Super Fund, it is not only the investments you control. Once you’ve reached the age and conditions that allow you to access your superannuation, you may be able to choose how you go about doing this. Whether this is via pension payments or lump sum withdrawals, you can decide when and how these are paid to you giving you greater control of your retirement income compared to a traditional super fund.
More control over death benefits
For many Australians, superannuation will be the largest asset they own outside of their family home, yet most give little thought as to what will happen to it when they die.
Contrary to popular belief, it is not your Will or estate. The trustees of the super fund generally control how death benefits are paid. Most, but not all funds allow members to provide death benefit directions to the trustees, but the level of such instructions may change from one fund to the next. The trust deed of your SMSF will set out the rules as to what instructions may be provided to the trustees.
Where to get advice about your Self managed Super Fund
As you can see, as a trustee of your SMSF you have greater control of your superannuation in a number of ways. However, there is a power of work that goes into the administration side of your SMSF and making smart investment decisions.
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Disclaimer: The information above is for general information only and should not be taken as constituting professional advice. You should consider seeking independent legal, financial, taxation or other advice to check how the above information relates to your unique circumstances. We are not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of the above information.