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Self-Managed Superannuation Funds

According to the ATO around 2,000 Self Managed Superannuation Funds (SMSF)s are being set up every month. This is a great result and shows that more and more Australians are becoming engaged with their superannuation and are taking control of their own destiny.

So why have they become so popular?

The main reasons given for setting up a SMSF are flexibility and control. You choose your own investment strategy with the help of your adviser and can alter this at any time. Our interest in superannuation has grown in recent years resulting in a desire to take a more active interest in investment decision making

A SMSF can also invest in direct property and many small business owners use their superannuation money to help fund a business property acquisition. This allows them to make tax deductible rental payments in their businesses which go directly towards their own retirement nest egg.  Even those that don’t run a business still state the ability to invest directly into property as one of their main reasons for setting up a SMSF.

Poor returns from existing super funds have also been a large driver of the SMSF growth. A lot of people (rightly or wrongly) think they can do a better job and, even if they can’t, seem to be happy to accept their own mistakes over that of a professional fund manager.

Other reasons include the ability to include family members in the fund, the ability to transfer certain assets and the ability to borrow.

Be careful – don’t jump straight in and set up a SMSF. There are some important considerations that require some thought first..

The most important is to consider and understand the responsibilities that come with being a trustee of your won fund. Remember you become ultimately responsible for the running and administration of your fund.

Ask yourself if you have the necessary time and skills to manage the fund and are you confident enough to make your own investment decisions. Of course you can get help with these by engaging a financial advisor to assist.


Knight Financial Advisors Pty Ltd is a Corporate Authorised Representative of NKH Knight Holdings Pty Ltd (AFSL 438631) ABN 30 163 152 967. The information contained herein is of a general nature only and does not constitute personal advice. You should not act on any recommendation without considering your personal needs, circumstances and objectives. We recommend you obtain professional financial advice specific to your circumstances. 

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