self managed super fund

5 Key Benefits Of Setting Up A Self Managed Super Fund

Self-managed super funds (SMSF) have become increasingly popular in recent years. SMSFs are a type of trust that allows individuals to take control of their own retirement savings and investments. Establishing an SMSF can bring many benefits, including greater control over decision making and the ability to tailor investment strategies according to individual goals. This article will outline five key benefits associated with setting up a self-managed super fund.


Self-managed super funds (SMSFs) offer individuals and families the opportunity to take control of their retirement planning. This provides those who choose this option with a greater level of flexibility when it comes to asset allocation, contributions and withdrawals from the fund. It also allows them to tailor investments according to their personal financial goals, risk appetite and tax situation.

For many people, SMSFs provide an opportunity for more active involvement in managing their own retirement savings which is not available through traditional ‘retail’ or industry superannuation funds. By taking an active role in developing a tailored investment strategy that meets their individual needs, investors can have confidence that they are doing all they can to reach their desired outcomes in retirement.

One of the main advantages of setting up a self-managed super fund is being able to access strategies such as gearing, timing markets or utilising derivatives that may not be available under other types of superannuation structures. As well as having more control over your assets, you are also able to make decisions about how much you contribute each year within the limits set by government legislation and regulations.

The ability to actively manage your own investments gives investors far greater scope than what is typically offered through retail and industry funds which generally use one size fits all approach. With an SMSF, investors have full autonomy over where their money goes and when it should be accessed for retirement income purposes – making it a powerful tool for long term wealth management strategies.


The ability to make investment decisions that are tailored to personal needs is one of the primary benefits of establishing a self-managed super fund (SMSF). With an SMSF, there is greater flexibility for investments than with other types of funds. This enables investors to actively manage and diversify their retirement savings in ways that suit their individual circumstances. Additionally, members have control over how assets are allocated within the fund; they can decide which assets should be held and when they should be bought or sold.

Asset protection is another key benefit afforded by setting up a self-managed super fund. Through careful management and planning, it may be possible to minimise risk while maximising returns on invested capital. For example, some asset classes provide tax advantages as well as reduced volatility compared to others – such advantages can help protect a retiree’s wealth from market fluctuations. Furthermore, SMSFs generally offer more options than other funds in terms of holding various types of assets such as property, shares and managed investments.

Importantly, a major advantage offered by SMSFs is choice – both in terms of where money is invested and what services are used to run the fund. As opposed to relying on external providers who often charge high fees for managing your finances, individuals can choose exactly what type of financial products best fit their requirements without incurring any additional costs associated with third party service providers. By making these decisions independently you also gain access to expert advice whenever needed so you can stay informed about changes in taxation laws or regulations affecting your pension income stream.

Additionally, an SMSF offers peace of mind knowing all your retirement savings are being managed professionally according to your wishes and objectives rather than someone else’s preferences or opinions. Moreover, this structure provides significant scope for controlling expenses related to running the fund including accounting fees and audit costs which helps preserve long term value for its members’ hard earned assets..


Setting up a self managed super fund (SMSF) can be cost-effective for individuals who are willing and able to manage their investment portfolio. An SMSF typically has lower running costs than other types of superannuation funds, as there is no need for a third party administrator or financial planner. Additionally, the investor may benefit from fee reductions when making investments within an SMSF due to economies of scale associated with larger investments.

In comparison to retail superannuation funds, an individual establishing an SMSF will have more control over their own retirement savings and will not incur additional fees that would normally be charged by a professional service provider. Furthermore, some investors may also benefit from reduced commissions or discounts on investments purchased through an SMSF which is another way the set up costs could potentially be lowered.

Tax Efficiency

Tax efficiency is an important factor to consider when setting up a self-managed super fund (SMSF). A SMSF can provide numerous tax advantages that are not available through traditional retirement savings vehicles. The Australian Taxation Office (ATO) offers significant incentives for those who select this type of structure for their retirement planning, including lower rates of taxation on certain types of income and capital gains taxes. Additionally, most investments held in the superannuation environment are taxed at concessional rates, meaning that contributions made by members will be taxed significantly less than if they were invested outside the superannuation system.

Moreover, there may also be opportunities to reduce taxation liabilities through strategies such as salary sacrifice or transition to retirement pension arrangements which involve making pre-tax contributions into your SMSF account. Furthermore, depending upon individual circumstances and eligibility requirements, it is possible to claim deductions on personal investment expenses related to managing a SMSF. This includes costs associated with professional advice or accounting fees incurred in running the fund.

In addition, rollovers from other super funds can have several tax benefits including being able to transfer money while preserving any existing capital gains tax discount already applied to assets transferred from another fund. Finally, it should also be noted that withdrawals taken during retirement may offer opportunities for further tax savings due largely to the fact that individuals over 60 years old do not pay any tax on lump sum payments received from their SMSF, regardless of how much has been contributed by them previously.

Estate Planning

Estate planning is an integral part of retirement planning and a self-managed super fund (SMSF) can be utilised to facilitate this process. An SMSF provides the benefit of independence, allowing trustees to make decisions that are tailored to their individual situation. Furthermore, it offers asset protection through ownership by the trustee in trust for members, enabling flexibility when considering estate planning objectives. In addition, capital gains tax exemptions may be available on certain assets transferred into an SMSF from other entities such as family trusts or companies.

An effective superannuation strategy should take account of all relevant factors which would impact beneficiaries’ entitlements upon death, including taxation liabilities and potential disputes between beneficiaries. This could include taking advantage of strategies such as reversionary pension payments and binding death nominations. It is also important to consider any changes in legislation that might affect these arrangements over time.

The trustees of an SMSF must ensure that they comply with their legal duties both before and after a member’s death; if not done correctly there will be significant financial consequences for the surviving members. For example, ensuring that the deceased member’s balance is paid out within twelve months of death can help minimise tax liability in respect of concessional contributions made prior to passing away. Taking appropriate advice from professionals who specialise in this area is highly recommended in order to ensure accuracy and compliance with legislative requirements.

It is essential to implement a sound estate plan alongside a well-structured superannuation strategy so that maximum benefit can be derived from one’s wealth throughout life and beyond without incurring unnecessary costs or burdening those left behind with complex administration tasks following death. Appropriate professional guidance should always be sought when making decisions about how best to structure an SMSF given its complexity and importance in providing long term security for oneself as well as future generations.


In conclusion, setting up a self-managed super fund can offer a range of benefits for individuals seeking greater control and flexibility over their retirement savings. From the ability to invest in a wider range of assets to the potential for tax savings and the ability to tailor investment strategies to individual needs, self-managed super funds offer a compelling alternative to traditional superannuation funds. However, it’s important to note that managing a self-managed super fund requires a significant amount of time and expertise, so it’s important to consider these factors before making the decision to set one up. With careful planning and the right support, a self-managed super fund can provide a powerful tool for individuals looking to take charge of their financial future.

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