DIY Super Fund Comparison

If you’re looking to stash some cash for your retirement, then a self managed super fund (also known as a SMSF) is one way to get a decent return on your investment. With a DIY super account you are able to invest your savings into a range of term deposits, high interest savings and managed funds with a broad range of investing strategies. Take command of exactly how your superannuation contribution gets invested with a DIY super fund!

An Overview of DIY Super Accounts

The decision of where and how to invest money for the future is one of the most important choices you’ll make in your life. Enjoying the rewards of a life’s work in retirement is something everyone should look forward to.

For many this means selecting a professionally managed super fund. For people who have the confidence and resources to manage their own investment, a DIY super fund, otherwise known as a self managed super fund (SMSF), is a great choice. DIY super funds provide trustees with hands-on control of their investments, but this control also comes with a great deal of responsibility. You need to have solid knowledge of the associated financial and legal issues, and the time and interest to research, manage and track your investment. If you have the skills and are prepared to put the time in, a DIY super fund can be a very rewarding way of planning for retirement.

DIY super funds are strictly regulated by the Australian Taxation Office (ATO), and are a complex form of investment. A DIY super fund can have one to four members, who are each appointed as trustees. As a trustee you have legal responsibilities imposed on you and must only use the money for your retirement. You are required to establish and adhere to an investment strategy, keep full financial records and annually audit the fund with a qualified auditor. Trustees are responsible running the fund and paying fees and benefits as required.

These conditions may sound daunting, and DIY super funds certainly need time and attention, but managed wisely offer a powerful and flexible form of investment.

How to Compare DIY Super Accounts

Before you set up and start running a DIY super fund, it’s crucial to compare what’s on the market and find the one that is best for you and you fellow trustees, and offers the biggest returns. You should compare all the terms and rates and the level of fees that are applied.

The interest rate is very important since you want a deal that earns the most on your investment. Other essential features to compare include the set-up price, minimum deposit and balance, limitations on transactions, monthly fee and annual admin charges.

You should compare and choose a DIY super fund that matches the size of the investment, the level of support you require and how much flexibility you want with your funds.

Reasons for Applying for a DIY Super Account

There are many great reasons for knowledgeable and confident investors to set up a DIY super fund. By self-managing your fund you take control of how your money is invested for your retirement. Providing you keep to the ATO’s regulations and follow the fund’s stated investment strategy, you get plenty of flexibility in managing your finances.

Depending on how much professional and administrative assistance you require in running you super fund, it can be an excellent way to reduce the costs when compared to other super schemes.

As a trustee of a DIY super fund you can also minimise the tax on you your investment portfolio, and generate a larger income for your retirement.

Suitability of DIY Super Accounts

To get the most out of running a DIY super fund, you need a minimum of $200,000 to $250,000 to invest. If you have a smaller sum to invest you’re probably better off with a retail or industry super fund, or different type of investment.

These accounts are not suitable for everyone – you need to know exactly how to manage and run investments. It’s crucial that you have financial knowledge and skills, and are able to create and follow investment strategies in order to run a DIY super fund. Time, discipline and the application to research and track the fund is essential. To be suitable for self-managed super funds you also generally require separate life insurance, income protection and total and permanent disability cover.

Benefits of DIY Super Accounts

The benefit of DIY super funds is the control you have over growing your money, selecting how to invest and when to invest. If you have the expertise and responsibility to manage the fund, you have the benefit of knowing where your money is being invested and how your retirement fund is shaping up.

There are tax benefits when you become a trustee of a DIY super fund. You can minimise the taxes you pay on other investments by integrating them into the fund. You can also reduce the amount of Capital Gains Tax you pay by carefully choosing when to buy and sell investments.

Open Your DIY Super Account Now Online!

Once you have found the DIY super fund package that you want to invest in, you can start the online application process. When the trust is established you can prepare your investment strategy, start managing your finances and planning for the future.