Is an SMSF Right For You?

AD | I know a lot of people have done a lot of thinking and reflecting over the last 18 months. The pandemic has made people question all sorts, from career paths, hobbies, their attitudes towards travel and where they want to live. One thing that everyone has had impacted in some way is freedom, and your levels of financial freedom can impact whether you take action on any of those things you’ve been thinking about. Could an SMSF fund give you the freedom to make those choices? 

Featured Image: Photo by Scott Graham on Unsplash

What is an SMSF fund? 

If you’re in Australia, self-managed super funds (SMSFs) are a way of saving for your retirement. The difference between an SMSF and other types of funds is that the members of an SMSF are usually also the trustees. This means the members of the SMSF run it for their benefit and are responsible for complying with the super and tax laws. 

It is more complicated than a simple loan, but you have more freedom and control too, providing you have the skills (or someone else with the skills) to set it up and manage it properly.  

An SMSF must be run for the sole purpose of providing retirement benefits for the members or their dependants. Additionally, all decisions you make as trustee of your SMSF must be in the best financial interests of the members. Don’t set up an SMSF to try to get early access to your super, or to buy a holiday home. Those things aren’t allowed.  

Is an SMSF right for you? 

Maybe not. As I mentioned, you need to be able to manage your own finances well and due to the complicated nature of them, there could be better options for your personal circumstances. But if you’re astute in money management and like the idea of having more control, it could be the solution for you.  

Thinking about an SMSF? 

If you’re thinking about an SMSF but aren’t sure if you’re doing the right thing, need help with the setup, or need help managing your fund, SMSF Loan Experts can help.  

They can help you refinance your SMSF to make the most of your benefits now. Although the fund is exclusively for your retirement, if you’re paying above and beyond on interest fees now, you could be costing yourself thousands of extra dollars a year in interest that you could be using for things like trips or home improvements right now.  

I have bad credit, can I get an SMSF? 

Having bad credit doesn’t have to ruin your financial future. If you’re in a position where you think you’d be turned down, a company like SMSF Loan Experts could be exactly what you need. Using their partners, depending on the circumstances surrounding your credit, you may still be able to take the SMSF route, without the pain of an incredibly high interest rate.  

To all of my Australian readers, have you ever considered an SMSF?  

Until next time, 

Sophie 

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