If you haven’t already looked into investing in a self-managed super fund, it may be high time to change that. Taking more control of your superannuation scheme is going to benefit you in the long run, even in the presence of a highly regulated and, at times, complicated investment environment. Let’s take a look at some of the more beneficial effects of investing in a self-managed super fund:
Plenty of Choices at Your Disposal
One of the reasons why self-managed super funds are so popular is due to the wide array of choices that they present to the investors, regardless of the amount they expect to invest at first. Simply put, you can use your fund capital to invest in properties, businesses, long-term fixed deposits and pretty much anything else that could be used to generate income over the span of multiple years. This would not be possible in any other way: even if you seem to overwhelm by the variety of choices, you can always hire an SMSF auditor to explain everything to you in a comprehensible manner.
You Can Borrow to Invest Large Amounts of Money
With a self-managed super fund in place, you can make use of personal loans to purchase property or to make investments that are way out of your budget. These will then be able to provide you with sufficient income in the future, and you can use a part of this income to pay back the loan you took originally without requiring you to find other ways of generating income.
When investing in a self-managed super fund, you can actually make use of several tax returns Mount Waverley to minimise expenses and maximise your long-term income. In fact, you are able to pass on these tax benefits to other members of your family, and these will be valid even several years after the death of the person who was originally entitled to these tax breaks.
Reliable Asset Protection
Self-managed super funds are a perfect way to save your assets whenever your business incurs a lot of losses, leaving you indebted to many of your creditors. In cases like this, your superannuation benefits won’t be liable to pay back your debts, thus leaving with you with something of value, even when everything else you had was lost due to high debts.
Cost-Effective When Compared to Alternatives
Self-managed super funds are usually more cost-effective than something like a public superfund. This is even more evident with higher fund balances, as you will be paying a lot more in administrative expenses when opting for a public superfund.