“It may be that the SMSF is the absolute way of the future”

Jeremy Cooper – Head Of The Cooper Review Into The Superannuation System

A SMSF (“Self Managed Super Fund”) has a number of big advantages compared to other forms of superannuation.  Here are 5 of them…

1. Control

The members, who must also be the trustees, decide on the fund’s investment strategy and choose the fund’s investments.  A SMSF can bank with any bank, insure with any insurer and, subject to the sole purpose test, invest in practically most investments.

The trustees also select which professionals they want to help them administer the SMSF, including the financial planner, tax accountant and auditor.

2. Flexibility

The fund’s investments can be tailored to suit the members’ specific needs before and after retirement.  This flexibility allows for more specialised investment selections and can produce significant taxation advantages over public offer funds.

Also, in retirement the trustees have greater flexibility in paying tailored income streams to suit the member’s income and taxation needs subject to superannuation legislation.

For example, the SMSF can pay an account based pension.

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