Do you want to be freed of financial worry when you retire? While many people are looking forward to retirement because they can now be free from work-related stress, others worry about its financial repercussions. To assuage the concerns of many when it comes to the end of their employment, the Australian government offers a superannuation program to encourage its constituents to accumulate funds that they can use for their retirement. To help you plan your pension, you can get the service of companies like More Superannuation in overseeing it through a self-managed super fund (SMSF) platform.
What is superannuation
Superannuation is a partly compulsory program that encourages employees to contribute a portion of their salary for retirement purposes. Usually, they give 10% of their current salary as an investment to their pension. To encourage their behavior, the government extends tax benefits to them as a reward. As of 2018, Australia has over AUD 2.7 trillion superannuation funds, making it the 4th largest pension fund holder in the world.
Though it seems that Australians are patronizing this project, one of the problems that have arisen from this pension program is the consolidation of multiple accounts. As such, there now SMSF to help members manage their investment themselves.
Why get SMSF
Australians opt for SMSF because it gives them the freedom to choose where they will put their investment fund. A standard super fund is typically controlled by an investment manager who decides where your money will go.
He will make arrangements for you without needing your consent. This lack of control over their investment is a turn off for many, so they subscribe to service companies like More Superannuation to help them handle their pension money.
Who can best benefit from SMSF
An SMSF is best for individuals with a high net worth. Typically, only those with a balance of $200,000 are encouraged to set-up an SMSF. If your balance is below this amount, it might be better to ascribe to a standard super fund because you might be swamped with added costs involved in managing it on your own.
SMSF is also perfect for those who understand how the investment world works. If you are knowledgeable about property investment and the international market, you can use SMSF to your advantage.
Finally, SMSF suits well for individuals who have the time to manage their accounts. Reviewing investment options and submitting a report to the Australian Taxation Office (ATO) take time. Therefore, if you are a busy individual but still want to manage your investment through SMSF, you might want to ask for extra help from professional accountants who can advise on where to put your investment.
Choosing the best SMSF platform
The primary consideration in choosing the best SMSF platform is its accountability to multiple Australian government institutions. Your SMSF platform must be regulated by ATO and Australian Securities and Investments Commission (ASIC) to ensure that all your transactions are legal.
It would also be extremely helpful if your SMSF provides relevant and accurate information about good financial trends to help you decide where to put your money. Additionally, it should be able to provide you with a tracker of your fund details, service applications, query flow, and other pertinent details regarding your investment.
By religiously giving your superannuation contribution, you can be assured that you will be able to live your retirement years in comfort. If you would like to oversee your investment by yourself instead of relying on a fund manager, then you can subscribe to an SMSF platform of your choice. Check out the options you have and see if this financial endeavor is something you would like to pursue.
This post was last modified on August 17, 2020 1:37 PM