Why your own Self-Managed Super Fund

 

Did you know “Long term industry super funds return an average of only 7% pa less fees for the benefit” … ouch!

 

The ATO recently published data showing that an average SMSF outperforms corporate, industry and retail funds 4 times out of six.

People who choose to take control of their own Super Destiny are achieving better returns than those who choose to remain in an industry fund … why wouldn’t you set up your own SMSF?

You are aware that industry funds include annual fees, but did you know that industry funds who invest on the back of other managed funds are paying those fund managers fees on your money being invested there. No wonder the return on your investment is so low.

Your fund manager is largely anonymous to you, where he chooses to ultimately place your hard earned funds is out of your control. Check out your superannuation statement and I am sure you have come to the conclusion that you can do a far better job yourself!

Close to 30,000 SMSF’s are being set up per annum in Australia because people just like you want an element of control and choice of where your hard earned monies are going to be invested in your own Self Managed Super Fund which ultimately is your retirement destiny. You would have to agree!

With over 9% of your salary going into your retirement planning ask yourself “who is in control of my super destiny, who is making my choices for me and how is my own money being invested?”

 


 

Take Control

  • Choice of Asset Class you prefer to invest in
  • Take control of your own Super destiny by controlling how your own money is invested
  • Opportunity to plan your investment strategy to suit your own retirement goals
  • Ability to diversify your investments in your SMSF
  • Understand what they are and take control of outgoing fees
  • Become more hands on in managing your own finances effectively
  • Roll your own super balance into your own SMSF
  • Having up to 4 members allows for succession planning of Super Monies down the family line
  • All contributions into your SMSF are taxed at only 15% saving you tax if you took the funds in your personal capacity
  • On choosing to invest in a property you have the ability to borrow funds and leverage your retirement planning by up to 80%

 


 

Why Borrow to Invest in Property in a SMSF ?

The power of leverage

  • The power of Compound Interest is Significant in maximising the return on your Investment
  • The power of being able to borrow up to 80% of the value of the property enables you to
  • Example of leveraging on a property value of $500,000
    • Invest only 20% = $100k
    • Achieve Capital Growth on 100% of the asset of $500,000
    • If capital growth is a consistent 5% per annum, your $500,000 will grow to $814,448 in 10 years
      • If only your $100k was working for you this would return only $163,000
      • A significant difference of $651,448 or 49.9%
  • Your tenant will co-contribute towards your retirement savings plan

 

Tip : Would you rather the bank and your tenant did the heavy lifting for you and return you around $800,000 over 10 years or only $163k?