A self-managed superannuation fund (SMSF) is a type of superannuation fund (a retirement savings account) that is structured and managed by the fund members themselves.
A self-directing superannuation fund is a type of superannuation fund that allows individuals to manage their own retirement savings. It provides a range of benefits and advantages, including:
1. It gives individuals the flexibility to manage their own retirement savings and investments, as opposed to having them managed by an outside fund manager. This means that individuals have more control over their retirement savings and can tailor their investments to their own needs.
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2. By managing the fund themselves, individuals can save on the fees they would otherwise pay a fund manager. This can result in significant savings over time.
3. They have the potential to provide significant tax benefits. For example, SMSFs are able to claim tax deductions for certain expenses such as administration costs, and also benefit from concessional tax rates on certain investments.
4. It provides a wide range of investment options, including shares, cash and fixed interest investments, as well as alternative investments such as property or art. This allows individuals to diversify their investments and reduce their risk.
Overall, an SMSF can be a great way for individuals to take control of their retirement savings and reap the benefits of tax savings and a wide range of investment options. However, it is important to consider the risks associated with managing a SMSF, such as the potential for financial losses, as well as the time and effort required to manage the fund.