If you have come to this post, then you already know what it is SMSF? If you are confused about whether to be a part of the system or not, then this is the post for you. We will discuss all the benefits of SMRF in detail here.
Flexibility & Control- SMSF offers a range of flexibility and control. As members of the fund are also the trustees, there is the flexibility to change the rules based on specific needs and circumstances. It is not an option in any other superannuation funds on the market. The level of control allows you to make real-time benefits. Managing your super investments allows you to make quick adjustments regarding your portfolio following market changes.
- Effective Tax Management- As Crypto SMSF trustee, you also must pay the same tax rates as other superannuation funds. Still, you can incorporate tax strategies that best benefit you and your situation here. The flexibility and freedom allow you to easily manage the funds to get the benefits of various tax benefits schemes run by the government. By having control over the disposal of assets, you may be able to reduce or potentially eradicate a capital gains tax liability.
- Accountability- Being an SMSFs trustee and member means you will be more aware of how your super monies are invested and responsible for managing those investments’ performance. This would not be the case with the Industry or Retail Super Funds, where, due to their size, investment performance is not released for many months-long the road.
- Estate planning- SMSFs offer great flexibility with the estate planning needs of the trustee. SMSF members can make binding death benefit nominations that do not lapse, unlike many public offer superannuation funds that require binding death benefit nominations. Also, SMSF members may have greater flexibility in specifying how death benefits will be paid.
- Adding Value with Property- SMSFs allow you to own property through your SMSF. It typically involves the fund acquiring a residential or commercial rental property. Fund members or relatives cannot rent a residential property from an SMSF because the in-house assets test prohibits them from withdrawing the funds.
Wrapping Up
Being a trustee of SMSFs comes with a lot of responsibilities. You come under strict laws and regulations that govern SMSFs. As a trustee of your super fund, you are responsible for your investments and complying with superannuation and taxation laws. It is always a good idea to do thorough research before becoming a trustee of an SMSF. Always make sure you’re aware of the risks to consider before setting up an SMSF.
