In Newcastle and Beyond, Self Managed Super Funds Can Give You Financial Freedom
SMSF are the Ferraris of the superannuation world and are the fastest growing area of superannuation funds in Australia. The market share of a SMSF is approximately 29% which is in excess of $578 billion^.
SMSF are becoming more popular due to the freedom they provide including the ability to borrow money, buy art work and invest in direct property.
The key benefits can be:
- Greater control – you decide where your money goes and at what point in time.
- Greater investment choice – for example direct property.
- Economies of scale – for example the bigger your SMSF fund the lower fees.
- Can have up to four members – for example husband and wife.
- Leverage – can borrow money to invest.
The negatives can be:
- Higher fees.
- Increased compliance burden.
- Potentially more time and effort required.
^ASFA – The Voice of Super – Superannuation Statistics December 2015
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