Self Managed Super Funds

With the increasing popularity of SMSF’s as preferred retirement savings accounts for Australians, Zenith Property Consulting has partnered with an SMSF specialist offering clients the opportunity to establish a Self Managed Super Fund to take control of your super if appropriate.

Superannuation Industry

As at 30 September 2010, nearly $410 Billion was invested by members in SMSF’s. That’s nearly 32% of all retirement savings monies in Australia. There are over 438,000 currently operating SMSF’s, which represents the retirement benefits of over 800,000 Australians, with over 2,000 new SMSF’s are established every month. These facts make the SMSF industry the fastest growing area of retirement savings and SMSF’s now have the largest asset base, as a class, when compared to all other superannuation entities.

Even more Australians now realise the best person to look after their money inside of super is themselves!

Why self managed super?

A SMSF offers several main advantages over more traditional superannuation accounts:

  • Greater control over your investments, through choice and investment managing.
  • Increased flexibility of investments and investment classes.
  • Competitive fees when compared to other superannuation accounts.
  • The ability to incorporate capital protection over their retirement savings.
  • Ability to borrow to invest through your SMSF, provided strict rules are met.

Greater control of your financial future

A SMSF allows the members to have direct control of their retirement savings, allowing them to choose their preferred investment classes which may include:

  • Shares – Australian or International
  • Exchange traded funds (ETFs).
  • Property – either commercial or residential
  • Collectibles
  • Access to Gearing

With greater flexibility you can take control and actively manage your investments. With a hands-on investment approach, you can quickly adjust your investment portfolio as markets change. Having a SMSF allows you to decide to invest in investment products which you would not get exposure to through traditional funds. These particular investments allow SMSF’s the opportunity to invest in growth markets such as direct shares, China / India and Australian Property.

Incorporate Capital Protection

The increased control that a SMSF brings allows members to introduce capital protection on their superannuation investments, when investing in direct shares. Incorporating capital protection provides the ability to reduce the risks of investing significantly. In 2008 over $300 billion was lost in Superannuation alone – the majority of this could have been avoided with the use of capital protection.

Borrowing money to invest

Many Australians have used gearing strategies to accumulate wealth in their own names through borrowing monies to invest. Recent amendment to the borrowing restrictions for superannuation funds now allows SMSF’s to borrow to invest allowing the opportunity to earn a higher return from their investments through a greater starting capital base. Borrowing funds to invest can also increase the losses from your investments, if the underlying capital value decreases.

By implementing capital protection on your investments through your SMSF, you are able to borrow funds in order to give the SMSF the opportunity to enjoy accelerated returns, while minimizing downside risk, should the underlying investment decrease in capital value. SMSF’s are fast becoming the preferred long-term wealth creation vehicle for Australians.

Superannuation… Specialist SMSF administration providers

Our Australian based specialist SMSF provider prides themselves on being a market leader in SMSF administration. Their services and their team will ensure your SMSF is kept up to date and enjoys ongoing compliance and concessional tax treatment.

If you would like more information SMSF partner who will be able to advise on the many options available and the suitability based on your personal financial circumstances.
Office: 1300 854 552 or SMSF information request email: peter@zenithpropertyconsulting.com.au