This simple yet smart movie quote should remind us all that no matter how enjoyable and spectacular our present is, we must not lose sight of our future. We know too well that it is more than relieving to get caught up in the pleasant present moment, not allowing any of our problems or concerns to take its beauty away. While it is really healthy, admirable even, not to stress out about every single detail related to our future, there is nothing wrong with making certain plans and arrangements that can protect us from unwelcome events.

People nowadays, motivated by the success of the best Australian super funds, start to perceive SMSFs (Self Managed Super Funds) as a great chance to secure their future and the one of their loved ones. Well, at least financially. If you haven’t had the opportunity to learn about SMSFs as a form of retirement planning yet, then you have found your very first source of basic SMSF education. Our team of tireless Sherlocks has gathered enough information to get you familiar with the concept of these funds and help you realize whether they are right for you or not.

We shall begin this ‘lesson’ with a short definition of an SMSF. An SMSF is a retirement fund set-up by maximum four members who are also its trustees. This means that they have both the freedom and the responsibility to manage the fund’s belongings, choose the best investment options and properly prepare several reports for the needs of the regulatory agencies. The paramount purpose of these funds is to regularly provide their members with financial compensations (or, in other words, pensions) when the time comes.

It is interesting to find out that some of the best Australian super funds are run by a group of close family members and/or friends. This option seems to be the most acceptable one for many individuals. This way, they can make sure that making relevant investment decisions and working with people they know well will be easy and smooth. However, it is not uncommon for an SMSF to be administered by professional organizations that are specialized in offering SMSF services. The choice is entirely up to you.

Yes, that’s right: whoever said that we cannot take good care of our future without sacrificing our present must had been unaware of the existence of SMSFs.

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Currently an SMSF is one of the most popular ways to save for retirement. The main reason why this is such attractive choice is because it offers control as well as flexibility and transparency. In fact, the Australian Government encourages people to take responsibility for their individual financial retirement goals and the perfect way to do that is with SMSF accounts.

SMSF or self managed super fund, is a special retirement savings plan which is used to accumulate money that will benefit the its members during their retirement. SMSF is one of the best ways to save for retirement because it allows you to manage your own investment strategy, reduce tax and obtain tax benefits, and control administration costs.

Self managed super funds are increasing in popularity with their superior performance over retail and industry funds. A proof for that are over a million Australians with a combined asset pool of more than $550 billion.

There are many benefits of having SMSF accounts, but in order to make your investments work harder you need to have a good strategy.

With an SMSF you can invest in property. Borrowing within the fund to acquire property is a big trend among SMSF holders and with the clearing up of some gray areas in regulation it is expected to rise even further. Funds can now draw-down on a loan in order to buy properties on multiple titles which are now an option for SMSFs. Also, updates on properties which were previously banned by SMSF restrictions are now considered “repairs” and not “improvements”.

Statistics show that nearly a quarter of direct property investment is in residential property. This is probably because fund trustees are going for higher yields to service investment loans on geared property. However, residential property is also attractive because of low volatility and long-therm capital gains. Buying their future retirement homes within the SMSF is another innovative strategy for retirement savings, tax and lifestyle.

Putting in as much pre-tax contributions as possible by family members is another strategy of some of the wealthiest funds. This includes anyone under the age of 65 as well as anyone between 65 and 69 years old that is still doing some paid work. Basically, funds with a maximum membership of four people can receive up to $700,000 per year.

Diversification is one of the most basic strategies. Some of the bigger funds have only 5 percent of their money in a single asset class as opposed to the smaller funds who usually have around 38 percent.

As far as stock strategies go, you may need to do a little investigation regarding which strategy best suits your current SMSF phase. For example, if you are not of pension age, it is better to hold on to stock in order to receive a 10 percent discount on capital gains tax. While it may not be wise to make all your investment decisions based on taxes, you should definitely be aware of them.

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In order to avoid those pitfalls, setting up an SMSF is strictly regulated under the rules of the Australian Taxation Office (ATO). Before starting the setting up process, you need to make a good research and familiarize yourself with the main rules of setting up and managing an SMFS.

ATO SMSF strict rules are not our matter of concern today. This article is here to provide you the statistic reports published by the ATO, from which you can learn more about the general facts about this growing trend. In fact, the ATO SMSF statistics provide a clear picture about the dynamic development of the self-managed super fund industry.

The Number Of Younger Entrants Is On The Rise

Ten years ago, majority of people who have established a self-managed super fund, were over 45 years old. But it seems like this is not the case these days. According to the ATO SMSF report for 2014, an increased number of younger trustees have decided to set up an SMSF. Namely, the ATO has noted a significant growth of entrants aged 35 and over in the SMSF sector. This indicates that the SMSF is becoming more attractive among the younger generations with growing pace.

A Gender Shift Is Occurring In The SMSF Sector

Another change in this sector ATO SMSF report highlights, is the percentage of the trustees by gender. For the past few years, the elderly male population was leading in the setting up and managing of self-managed super funds. The things have changed as the Australian Taxation Office has noted a gender shift. The percentage of women who have established an SMSF for retirement savings in the last year has increased. Namely, women account for 47% of all SMSF members.

The Number Of Individual Trustees Is Growing Fast

According to the ATO SMSF, in 2014, the number of individual trustees has increased for over 90%. But it was also noted that the number of corporate trustees has declined for about 2% in the past year. This is a proof that growing number of Australians are realizing the benefits of having a full control over the assets they invest in.

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