A self-managed super fund (‘SMSF’) can be an attractive option for Australians looking to secure their financial future. It can offer greater flexibility to other retirement savings options as it enables members to make decisions about where and how their money is invested. SMSFs can also provide many tax advantages that could be advantageous for those looking to reduce their overall tax burden. However, one should always seek professional advice, as one person’s individual financial circumstances are different to another.

SMSFs can enable members to be in control of their own investment decisions, in addition to giving them the freedom to choose investments that align with their own personal goals and risk appetite. For example, investors can decide which assets to include in their fund, as well as the timing of contributions and withdrawals. Additionally, if an investor wishes to hold direct property investments, this can also be done through an SMSF.

Another benefit of SMSFs is the ability to borrow money within the fund, which can provide additional investment opportunities. This is known as ‘limited resource borrowing’ and may involve borrowing money to purchase a specific asset, such as a rental property or shares. The loan is typically secured against the asset purchased, and interest rates are generally lower than traditional loans.