SMSF: A Couple of Key Differences

A Self-Managed Super Fund (SMSF) is very similar to public super funds, but they have some key advantages for investors, which are not available in public super funds.

The Investor Selects the Investment

Public super funds pool monies from all of their members and then the fund's manager decides which investments to buy, sell or keep.

A SMSF is effectively restricted to a maximum of four members, and are usally family members (e.g. husband, wife, and children). As they are the only members, they decide what assets to buy.

A SMSF Can Buy Direct Property

When a public super fund talks about investing in 'property', they're usually referring to commercial property, and the super fund members have no say in which property will be purchased.

The members of a SMSF decide which property will be purchased, and may include residential property.

Beware of the Pitfalls

A SMSF has to follow very similar rules to public super funds, but there are some key differences, which need to be understood, before deciding if a SMSF is a suitable investment structure. So make sure you seek advice from a qualified professional before making any final decisions.

If you would like to know more about whether a SMSF investment structure may suit you, please Contact Us for a Free Financial Assessment.