There are many benefits to self managed superannuation funds and many people are willing to put in the hard yards of administration to get them. While the experts like to warn everyone about the downside of starting up self managed superannuation funds there are also benefits to doing so. Here are just a few of them: - * Self managed superannuation funds give their trustees much more control over their investments than would be otherwise possible. Naturally you have to have an investment strategy, but trustees can decide on whether their self managed superannuation funds invest in property 鈥?commercial or residential, government bonds, shares, cash or such things as art. * Another benefit of self managed superannuation funds is that investments are protected in the event of such disasters as bankruptcy or other legal claims. * One major benefit of self managed superannuation funds is the lower tax rate 鈥?15% is much lower than normal tax and this can be reduced even further by offsetting other tax credits. * With care, self managed superannuation funds can attract lower fees than normal super funds. * No capital gains tax is applicable to self managed superannuation funds in their pension payout stage. * Trustees can control when assets are to be sold to gain the advantage of no capital gains tax. Of course, there are disadvantages too, such as a higher initial set-up cost, lots of paperwork and ensuring that the self managed superannuation funds remain compliant, but many people are quite happy to attend to such matters for the benefits gained.聽 Before you decide to start up a self managed superannuation fund you need to go into the matter thoroughly with professionals to ensure you know just what you are getting into. Mel writes about self managed superannuation funds among other finance related topics.
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