The number of SMSF’s created over the last 10 years has significantly increased where there is now more than 478,000 funds in existence with an asset value of approximately $439 Billion and rising. It is the clearly the fastest rising sector in Australia.
It began with the baby boomers (those born between 1946-64) who wanted to take control over their retirement assets. They were frustrated with the lack of understanding of platforms, fund managers and the poor returns in retail Superannuation.
In the last 2 years there has been a rise in Gen X (born 1965 to 1980) starting SMSFs, these people have grown up with Super and have accounts that are over $100,000 and growing towards $200,000. They want to have more control over their assets and invest in areas that they are unable to in retail and industry funds.
Self Managed Superannuation can be an attractive retirement funding structure for numerous reasons including control, flexibility, choice of investments and greater speed in changing investment decisions (adaptation). You have the option to control and manage the strategies yourself or you can take total control and have little of the management by working with a team of SMSF Advisors, Financial Planners and Accountants. The power of the SMSF solution is that you have ultimate control of what advice you seek and the relationships you have with your advisors, however you must be willing to take on the responsibilities that being a SMSF trustee entails. If you have a good advisor team who can guide, assist and educate you along the way and you are willing to learn then this can be a successful strategy.
Our team at McMahon Osborne Group can assist you in this matter, if you are interested in setting up a SMSF please contact Lynda Parsons to make an obligation free 45 minute appointment to discuss the potential of you owning your own SMSF.
Next week we will go into the benefits of having an SMSF.