Benefits of an SMSF
An SMSF offers a range of benefits, but it’s important to remember that what works well for one person may not suit another. Whether an SMSF is right for you depends on your personal financial goals, level of involvement, and appetite for responsibility.
Here are some of the key benefits SMSFs can offer:
Broad Investment Choice
SMSFs allow access to a wide range of investments, including direct shares, managed funds, ETFs, term deposits, and even direct property. For experienced trustees, this flexibility can be a major advantage.
Borrowing Opportunities
SMSFs can borrow to invest in property or other assets under a Limited Recourse Borrowing Arrangement (LRBA), subject to strict rules and conditions.
Outsourcing Options
While you retain control, you can outsource key tasks such as accounting, tax reporting, and compliance—allowing you to focus on investment decisions.
Administrative Control
As a trustee, you have full control over how your fund is administered, including the timing of transactions, contributions, and distributions.
Shared Costs Across Members
SMSFs can have up to six members, which means costs can be shared among family members or business partners, potentially making the fund more cost-effective.