Anyone who has ever worked in Australia is likely to have at least one superannuation account. In fact, many Australian have multiple accounts and often are with the default industry fund by virtue of their employment award or agreement.
You are saving for your retirement and it’s important that you explore the best options for you. Over recent years, you have probably heard more and more about self-managed super funds (SMSF) but are they right for you?
There are four main areas you need to consider before taking the jump into a SMSF and of course, Paradise Financial are here to help.
Your retirement and lifestyle isn’t the same as mine. When planning for your future you need to consider what is most important to you. Do you want to continue to have a similar lifestyle to what you have currently, or maybe you’re ready to jet off around the world? You find it easier to select a certain annual income you would like to live on each year. When setting your goals consider factors such as aged care costs, donations to charities, assisting your children and other family members.
Understanding what you want out of retirement now, will help you make an effective plan on how to get there.
With any investment comes an element of risk and everyone has their own risk profile. Based on your goals and how much risk you are willing to take, you can develop your own superannuation investment strategy. When thinking about your superannuation consider how much money you need for retirement, your timeframe for acquiring this money and how much risk you are willing to take on.
Having someone else, such as Paradise Financial, manage your superannuation isn’t free. Every super fund – retail, self-managed and industry funds – all come with fees and costs. Often the fees are in relation to the level of service the fund provides. Self-managed super funds can come with higher fees and generally it’s recommended that you have a minimum $200,000 before you consider a SMSF.
Flexibility & control
When using a standard industry fund, you have very little control over where your money is invested. However, a SMSF offers you more flexibility. You can control your actual investments and strategies surrounding tax, retirement and insurance.
When to get advice?
There are many advantages to having your super in a SMSF, but they aren’t the best solution for everyone. Your individual situation is different and we encourage you to speak to us directly.
Paradise Financial can look at your individual situation and offer the best solution for your circumstances.
Complete your details here and once of our specialists will get back to you.