Positives of a SMSF
The biggest positive of a SMSF is the level of active control that you gain in your strategies for investments which helps you decide whether you may put your assets into something more long term or slowly into a more riskier investment.
The control that you obtain with a SMSF means you can gain time on your investment strategy based on your current position in life and how fast you want to achieve retirement. The younger generation may decide they would like to be more riskier in their investment plan as opposed to someone who is close to retirement and would like to increase their current wealth to the point of living smoothly.
With your own personal SMSF, you will always have the control over your own investments and wealth as opposed to going with a regular super fund.
Negatives of a SMSF
As expected, the benefits are great but not every great thing comes without a few set backs to help you reconsider. This is dependent on your current financial status and how involved you are with your savings. A SMSF is more directed towards those who are actively interested in increasing their wealth through their superannuation.
There are also some extra responsibilities you have to incorporate into your weekly habits which proves extremely tough for most. Some of your responsibilities will include:
- Lodging annual tax return statements
- Being subject to a controlled audit every three years
- Having an investment strategy set up
So keep these thoughts in mind when looking into getting a SMSF and we hope we have helped you out!
Article has been supplied by Wealth & Retirement Solutions.
Website: https://www.wealthandretirement.com.au