What is SMSF and why should you prefer it over other superannuation funds?

Are you looking forward to an incredible investment option that helps you after you retire? If your answer is yes, then an SMSF is the best option for you. Now those of you who are not familiar with what is smsf, let me tell you that it stands for self managed superannuation fund, wherein the funds are held and managed by a group of trustees.Each trustee is also the member of the fund, who all benefit by the funds money after their retirement (or their families in case of death).

Usually the process of setting up an SMSF requires creation of a trust deed, appointment of trustees, filling up certain forms, opening of a bank account, putting an investment strategy in place and so on and so forth. Moreover, you also need to know some basics about financial terms and other things relevant to the administration of the fund such as smsf borrowing.

There are numerous benefits associated with SMSF, some of which are as follows :

1) here has been tremendous growth in SMSFs over the past few years in Australia
2) You get immense control over the super fund and get flexibility in terms of investing the same
3) SMSFs are great when you want to avail various tax concessions
4) As compared to other superannuation solutions, costs of running an SMSF is much low
5) You can include insurance in your SMSF as a measure to protect both your income and assets

To ConcludeThis was all about SMSF in brief and what are some of its advantages. I do hope that it gave you a better idea or at least a basic idea about the same. Do let us know your opinion through your comments. Good luck!