Self-managed super funds | Mortgage Broker in Oran Park, Picton, and Menangle
Start your home loan journey today
What is a self-managed super fund (SMSF), and why is it worth considering?
In Australia, your employer is legally obliged to contribute a portion of your income into a superannuation fund. These super funds are long-term investment accounts designed to accumulate wealth reserved for retirement. These accounts are managed by organisations that you can communicate with to adjust your account investments in more particular ways. Although this system is effective in protecting Australians as they enter retirement, by self-managing your super, you have the potential to generate more wealth with a few smart investments.
Members of a self-managed super fund (SMSF) are typically trustees, unlike typical super fund accounts. As such, members of an SMSF have more control over their investments and can be more aggressive and/or reserved than with typical super funds. SMSFs also provide a larger array of flexibility, as you can make adjustments big or small to your portfolio to accommodate market changes/opportunities as they occur.
Although taking the pathway of an SMSF is enticing, it does take active participation and involvement in order to reap the maximum benefits. If you’re considering an SMSF, it’s recommended to connect with your local broker to gain an understanding of the essential steps and responsibilities involved in running an SMSF.
For expert guidance on your SMSF options, reach out to Dean Gee, Macarthur's local Mortgage Choice broker, directly on 0418 206 337.
What to consider when opting for an SMSF?
Unlike typical super funds, SMSFs require an ongoing responsibility from the member to manage all investment decisions. This means that in order to operate a SMSF effectively, you will need a thorough understanding of what’s on offer within the investment market and the push and pull of aggressive and conservative investing.
Alongside this, it’s important to make consistent and reliable contributions to your SMSF. It can be tempting to reduce either the frequency or the amount of funds you contribute when operating an SMSF. To ensure that you’re not lowering your standard of living in your twilight years, your contributions must remain in place while running an SMSF.
There are some unseen costs of operating an SMSF that many don’t realise before entering. SMSF costs are fixed, meaning that if your investments/assets are low in value, you can find yourself spending a relatively large amount in comparison to your total super contributions. As a soft rule of thumb, $250,000 of assets is advised in order to run an efficient SMSF. As such, it’s strongly recommended to crunch the numbers to determine if an SMSF is suitable for you and your lifestyle.
If you’re wanting to make the most of your retirement through an SMSF, reach out to Dean Gee, your local broker for Oran Park. Dean’s understanding of finances is an asset in and of itself for anyone looking to make the most of an SMSF.
Get in touch with Dean and discover your SMSF options - 1300 256 770.
As your mortgage broker for Picton, Dean can assist with a wide range of property and finance topics, including but not limited to:
