One of the key motivators for moving to self-managed super is greater control.
Your own superannuation fund provides members with control over the range of investments, the management fees and the tax bill. They also offer a wider choice of investment options compared to the ‘off-the-shelf’ super funds including corporate bonds, managed investments, listed shares, listed investment companies (LIC’s), exchange-traded funds (ETF’s) and direct property.
Flexibility is another key benefit of a SMSF. Apart from the wider choice of investments, your account stays with you wherever you go provided you remain within the framework of Australia’s superannuation laws. You can transfer personally owned listed shares and managed funds directly into a SMSF and they can own ‘business real property’ (property used wholly and exclusively for business). They also give you maximum flexibility when establishing and managing pensions including account based, transition to retirement and term allocated pensions.
Potentially a SMSF can also give you greater flexibility when it comes to accessing Centrelink benefits such as the Government’s Age Pension. SMSF’s also let you take full advantage of tax and super law changes as soon as they come into effect and they arguably offer even more tax benefits when you consider the ability to segregate accounts and to share imputation credits.
They provide families with a way to pool their resources and grow their wealth together, and they offer tax-effective strategies for the transfer of wealth between generations that may not be available through conventional superannuation products.