What You Should Know About Self-Managed Super Funds

Transforming your business entails thinking of the financial well-being of you, or your business, along the journey. One way to secure your finances and establish a better financial future is by investing in a self-managed super fund (SMSF).
For some, it might ring a bell; for others, you may have no idea what that phrase means. Regardless, we’re here to provide the basics to everything you need to know about self-managed super funds.

What is an SMSF?
A self-managed super fund is a private fund that you can manage on your own. This means selecting the investments you want to allocate your money to and the type of insurance on your SMSF. This gives you greater flexibility – you can choose investments based on your financial goals.
Like any investment you make, SMSF carries a certain amount of risk. Given the complex nature of funds, we highly recommend working with a financial advisor to help you make the right choices to maximize your SMSF potential.

The Benefits of an SMSF

– Investment Flexibility
In this day and age, we all love the ability to customize. When it relates to an SMSF, you have complete control over the type of investments and companies you want to invest in. The freedom in choice allows you to reach your financial goals more efficiently.

– Flexible Taxes
While taxes for an SMSF is treated similarly to a corporation’s funds, there’s greater control on your taxes. Since the trustees of your SMSF funds have greater control over the investment, they decide when to sell the assets. This affects the taxes you pay within a given year.

– Superannuation Perks
You have greater superannuation flexibility when you invest via an SMSF. You have more control over the timing of the contribution, sending earnings to members in your SMSF, and more. You can work with your financial advisors to find ways and minimize taxation on your SMSF. Additionally, you can also invest in one joint SMSF with three other people for your superannuation.

– Variety of Investments
Besides the standards stocks and shares to invest in, SMSF also allows you to invest in properties as well! You can purchase a large property such as a commercial property. A way to generate steady income is if a business property was owned by an SMSF and leased to the business. While the benefits of an SMSF are astounding, managing an SMSF requires extensive legal/financial knowledge, time, and skill. Additionally, understanding the nuances regarding taxes and regulations can save you from running into trouble with the government.

To make the right investment choices, to ensure you have the appropriate risk tolerance portfolio and maximize rewards, connecting with a financial professional can help you achieve your goals.
Working with our experienced business and financial advisors at Strategiq means you can access a plethora of advice, expertise, and sound solutions. Give us a call, send us an email, or send over a DM to get your SMSF up and running.