Self-managed super funds: Why you should consider switching
When it comes to your superannuation, it can pay off (quite literally) to increase the amount of control you have over your gains.
Every year, many Australians choose to switch their superannuation to a self-managed super fund (SMSF), but why is this investment style proving to be so popular? Should you consider switching to SMSF this year?
Flexibility and self-reliance
If you are a small business owner, you probably consider yourself an independent person, capable of carving your own path in life and in your finances. Your super fund is no different. Westpac describes granting greater control, more investment diversity, lower costs, higher returns, increased flexibility, better estate planning and further accessibility to funds as just a few of the benefits of using an SMSF.
Business development doesn't have to be the only place where you have complete control.
The professional choice
A new report from Roy Morgan Research has revealed that over $35 billion on average was switched in each of the three years leading up to 2016. A worrying trend of people refusing to take advice also appeared, with almost 31 per cent of those who switched their super fund failing to utilise any kind of financial advice at all.
That is, except for those who switched to an SMSF.
Almost 76 per cent of Aussies who changed to an SMSF had advice from a finance professional, such as an accountant, financial planner or adviser. Compared to the 42 per cent of those who switched to a retail fund and 15.8 per cent who opted for an industry choice, it is obvious that the decision for those who take their finances seriously is a self-managed super fund.
"The challenge is to ensure that people switching their superannuation realise they'd generally be better off getting advice, and that they can feel confident in their advisor," said Industry Communications Director of Roy Morgan Research Norman Morris.
Where to start
Starting your own SMSF can be a major challenge, as there are many legislative and bureaucratic steps that you must be aware of and follow in order to ensure that you are adhering to the law as well as getting the most out of your SMSF.
If you think you are up to the challenge of taking full control of your investment, speak to Wilson Porter today to find out how you can use our superannuation services for both your personal finances as well as for your business. Switching to SMSF doesn't have to be difficult, you just have to get the right advice.