There was a lot of self-managed super funds buzz, but what are they all about? Many people are weighing up their options and now more than ever planning to take control of the biggest asset they have (in addition to their home).
Here we discover the key factors that make SMSF so popular. You can also look for an smsf tax return via https://www.rwkaccountancy.com.au/smsf/.
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Reduce your costs Super
Many companies, industry, or super retail funds pay fees based on how much you have in your pension fund and are calculated as a percentage, not a flat fee. Therefore, as your super grows, you will be charged!
An SMSF essentially disappears all percentage calculations and allows you to pay a lump sum, which does not increase your bigger funds. So when you add up, think of the money you could save with an SMSF only on costs.
Maximize Your Returns
Apart from the money, you'll save on the costs of an SMSF and you will maximize your returns by fractionation where you invest your money. You can invest in equities, managed funds, residential properties, cash, and fixed interest in proportions as you deem appropriate for you.
Reduce your taxes with the salary sacrifice
Salary sacrifice is simply an agreement you made with your employer to pay a portion of your income before taxes in your SMSF.
The advantage of the raw dollar in choosing to sacrifice the pay is that the contributions in your SMSF are taxed in your name, but your SMSF to 15%.