The Generation Y people (people who were born between the early 1980s and 2000) are mostly interested in exploring the idea of running their own retirement fund and most of them consider the self-managed superannuation fund as a status symbol. A recent study has quoted that there is a huge increase in the number of active accounts and most of them are in the mid-40 age bracket.
Mostly, an adult will like to start his own fund to invest in areas, such as an investment property or in business. In some cases, they decide to manage their own money, but do not have the means or ways to start their own fund. A simple and safe option that he could choose is joining in other’s fund. Often kids become members of their parent’s SMSF, so they have the benefit as the costs are paid mostly by the family – father and mother. Taking help from accounting firms will help to a great extent in investing and managing wealth in the proper way.Mostly, these funds are suited for investors who have a proper means of planning and understand the tools required to carry out the process. Though they cannot compete with industry players when it comes to money management, but it comes with many advantages.
And when you have your business accountant with you, you can understand and utilise these funds in a far better way. There are many reasons that people choose these funds over other options and some of them have been discussed below:
Fees Saving: The normal funds usually charge a good amount of your hard earned money as some kinds of fees on your investment, which typically means that one tends to pay more as the balance in your account grows. But with this fund options, the person pays the same flat fees for most of the other years. This will definitely make a difference in your final pay out
.Customizable: Most people prefer SMSF, as it provides an option to control their own investments and it consists of many options via which one could choose wise and safe means of investing.
Property: buying a property is easier and opting for a business premise offers many advantages over rental or shared premises and is also cost effective. Though there are number of factors that need to be considered, it is a safe option that also has tax refund that can be used to save considerable amount of money.
To conclude, SMSF could be considered a great option, but it could not be the right plan for everyone. These plans ideally come with greater responsibilities which include making proper investment decisions and ensure that the person complies with the local law at all times.