To start off, what is a Self Managed Super Funds or SMSF? This is a superannuation fund or a particular type of arrangement made available for citizens of Australia so they can have funds when they finally retire. These funds are not only supported by the Australian government employers are required to provide minimum procurement to its employees.
Currently, the minimum provision for employers to contribute to their employees for a superannuation fund stands at 9% of their salaries. What does it mean? It means that employers need to pay their retired employees through the fund every three months. The fund equates to how long the employee has been working with them, plus the total of law-mandated contribution and free willed beneficence. In addition, earnings, taxes, and fees also come into play. These important factors are paid to employees when they retire. In a nutshell, retirees get the total amount of funds depending on the required contributions made by their employers.
In case you are in the greater Perth metropolitan area, Baggetta & Co are well known SMSF experts and can help you set up and manage your own Super Fund.
The benefits of Self-Managed Super Funds or SMSF cannot simply be understated. Not only does a fund member have access to backup funds when they retire their dependents can also benefit from it when they pass away. The other perks of being a fund member are included below:
The privilege of greater autonomy on retirement savings – You will be able to take charge of where you want to put your money whether your plan is to purchase or sell your chosen type of investment.
A wide array of investment choices – Imagine having the luxury of choosing your desired investment from among attractive options such as direct property, listed shares, exchange traded funds or ETF’S, corporate bonds, managed investments, and listed investment companies or LCI’s (Click here to find out more).
Possible tax exemptions – Fund members will be able to enjoy potential tax exemptions associated with the fund
A unique opportunity to borrow from the fund – Fund members can borrow money from their SMSF through a particular type of arrangement. This arrangement is usually though direct properties, an investment option that normally involves access to funds, and can be acquired by them.
Self Managed Super Funds or SMSF ensures that retirees have a central fund where they can manage their lucrative investment choices, and have instant access to funds when they need it. In short, retirees in Australia have backup sources of money when they finally call it a day, and say goodbye to their employers.