Self Managed Super Funds: How They Work
The Australian government offers its citizens several ways to maximise their retirement. Self-managed super funds are the newest way Australians can invest for retirement.
An SMSF is an investment that carries several responsibilities and risks. Nonetheless, with careful research and decisions, it can net additional funds. Individuals form a group of two to six. Each individual becomes a trustee. The health of the fund rests with every member. If the group opts for third-party management, they can obtain a corporate trustee.
Another option is to use the SMSF to invest in property. The property must meet guidelines outlined by the related government offices. However, if it meets the requirements, the fund can proceed.
Super funds are the equivalent of a mixed portfolio. If you speak with a professional in the personal finance sector, they detail the levels of risk. Those interested in taking risks with the fund can consider acquiring 85% of assets in real estate or investment shares.
The 15% would focus on cash or fixed interest.
Those who want to take a conservative approach would shift the percentages. For example, to lessen the risk, pick more cash and fixed interest investments. Then pick less property and shares. Although property tends to become leverage against inflation, it still has some risk attached to it if prices drop.
Individuals interested in using their SMSF to invest in Australian real estate can contact Mortgage to learn about financing options. Our loan specialists have experience in walking clients through investment options and several mortgage choice options.