subject: Advantages Of A Self Managed Super Fund [print this page] Although a self managed super fund requires a bit more effort and planning to handle, it has its own benefits. These are some of the advantages of managing a fund on your own.
Greater investment freedom
With a self managed account, you have more freedom in terms of how to invest your money in order to make it grow. Depending on the initial amount that the trustees have invested, you can choose whether to put the money in a financial institution such as banks or invest it in stocks. In other words, the trustees get a say on how the funds should be handled.
Additional security of investing on your own
With self management, trustees have the additional benefit of monitoring the money since they are the ones managing the investment. In contrast, although the same security is also offered in superannuation that is not self-managed, trustees still feel more secured with a self managed account because they can see it.
Active participation in the management of the fund
Because the trustees are the ones in complete control of the fund, they can actively participate in the planning and the handling of the investments to make sure that the funds grow as much as and as quickly as they can. Unlike when the superannuation is managed by a third party or a separate financial institution, trustees know and agree on how the fund is handled.
Formal reporting not required
Another advantage of having this type of fund is the absence of formal reporting. Since the trustees basically know everything that's happening, there is little or no need for formal updates.
Flexible retirement planning and estate planning options
Self managed superannuation funds also allow trustees to have more control over the retirement plans. In fact, they could even consider estate planning options because they have complete control over what happens to the money or how to dispense it later on.
