Can an SMSF Have More than 4 Members?
Yes, an SMSF can have more than 4 members. In Australia, the maximum number of SMSF members was increased in 2021 from 4 to 6 members.
A Self Managed Super Fund (SMSF) is a private super fund managed by the fund’s members, who are also the trustees of the fund. SMSF is a great option for someone looking to increase their personal wealth while also financially preparing for their retirement plans. Generally, an individual interested in creating a self-managed super fund should already have amassed a high amount of personal wealth. For an SMSF to be cost-effective, the fund’s balance will need to equal $250,000 or more.
Self-managed super funds allow its members to take control of their retirement preparations by purchasing specific investments that generate a returned profit. The returned profit will then be distributed between the member’s retirement savings and can be accessed once the members reach retirement age or begin the transition to retirement.
SMSF can be used to invest in a wide range of specific investments that generate a returned profit, including the following assets:
- Australian and international shares
- Cash and bonds
- Overseas investments
- Residential and commercial properties
- Term deposits
- Managed funds
- Non-related businesses
Due to the high-risk nature of SMSF, a large majority of big Australian banks and lenders no longer offer services regarding self-managed super funds. However, various lending establishments still offer SMSF services.
Here at Mortgage House, our professional lending specialists are equipped with the knowledge and experience required to successfully walk potential members through the creation, set-up, loan application, and investment processes necessary for SMSF. Reach out today for more information!