Diy Super – An Insight Into It Workings And Benefits

By Author: SMSF Super
Total Articles: 5
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Most of the people think of retiring at the age of 65 years, it is that period of life when the income stops but expenses are present, then how do you manage your expenses during this stage of life. Unarguably you need to start saving young and accumulate enough money so that you have enough money for your retirement. DIY super is an excellent investment option to plan for your retirement it is secure and ensure bigger sums towards the end.

There are ways to accumulate money in self managed super funds (SMSF), among all super guarantee, salary sacrifice and annual contributions are more common. Besides, government has laid restrictions on SMSF borrowing, means you can borrow from your smsf to a certain extent only. When you borrow less you will automatically save more. You can withdraw your DIY super either when you reach the age of 60 years or fulfill the conditions of SMSF borrowing.

Benefits of DIY Super

There are SMSF auditors and administrators to help with your SMSF management, but they charge big fees. Many times they charge different fees for SMSF set up, SMSF audit, transfer etc. towards ...
... the end of the year you thus end up spending huge sums just on their fees. DIY super, can help you save all that money you would have otherwise spent as fees. Secondly it gives you complete control over your fund, you have the total freedom to manage it as you want and are responsible for the returns.

How much for your Self Managed Super Funds

In simple words you need an amount that will be good enough for your retirement. However very few are able to make an accurate estimate of their DIY super funds. To make an accurate estimate start with estimating your retirement goals and how you plan to spend your remaining life. Your goals will define the amount you will need for your life after retirement. If you want you can even utilize certain superannuation calculators to help you arrive at a figure for your fund. SMSF setup and management should be done based on your fund requirements.

DIY SMSF As Compared to Other Investments

The main purpose of smsf set up is to help you gather enough funds for your retirement in simple and tax effective manner. It brings to your tax benefit, when you earn from other sources you are taxed at the marginal tax rate, but when you earn from self managed super funds you are taxed at 15% at the max. If you are contributing into the fund through salary sacrifice then your contribution will be taxed at 15% and not at marginal tax rate. While other investments can be withdrawn any time, smsf borrowing is limited by the government, forcing you to withdraw less from your fund.

SMSF Audit to Ensure Better Investment

If you are not confident about DIY super then you always have the option to work with SMSF auditors, they are people with specialized knowledge of the whole thing, and can easily suggest whether your fund in moving in the right direction or not. Through an SMSF audit you can even know the faults in your investment policy. This is another way to make sure you earn good from your, self managed super funds.

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