| In Australia, the preferred national system for planning and contributing to self funded retirement, including pensions is Superannuation. While a particular individual may have a high net worth, the Australian Government provides significant tax savings and benefits for retirement planning using an approved method of Superannuation. |
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| What is self managed superannuation? |
| Self managed superannuation is a form of superannuation whereby an individual and/or small group of individuals (up to a maximum of 4) are permitted to manage their own superannuation fund including its investment strategy, the purchase and sale of assets and its beneficiaries under certain strict rules and guidelines. |
| Unlike membership to larger superannuation funds where an individual may be limited in a direct say as to the specific investment decisions, timing of asset purchases and disposals in the fund, self managed superannuation enables a far more transparent and direct involvement in the day to day investment decisions and therefore the overall performance of the fund. |
| As a result, self managed superannuation has increasingly become an attractive option for higher net worth individuals, self employed people, self funded retired people choosing a pension and even couples choosing an optimum vehicle for estate planning. |
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| What is a self managed superannuation fund? |
| A Self Managed Superannuation Fund (“SMSF”) is a specific type of trust permitted under Australian law where money and/or assets are held and managed on behalf of up to four members to provide future retirement benefits. |
| Subject to certain exceptions, all members of the fund must be trustees of the fund or directors of the fund’s Corporate Trustee. |
| The rules of every SMSF are set out in its Trust Deed, the operation of which is subject to Australian superannuation law. |
| For example, if a SMSF has more than four members at any time, it will be in breach of superannuation laws and cease to qualify as a SMSF. As a result, it may lose its concessional tax treatment. Alternatively, different rules in some circumstances apply to the operation of a SMSF with only one member. |
| A SMSF can invest in a wide range of assets (subject to some restrictions) including investment properties, shares and managed investments. |
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| Go to Next Section > Benefits of Self-Managed Super |
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