Do-it-yourself (DIY) superannuation funds, also known as self-managed super funds (SMSFs), have surged in popularity in recent years as an increasing number of Australians choose to take charge or their retirement savings.

In fact DIY super is now the largest segment of the superannuation industry, accounting for almost $400 billion in combined assets.

DIY super funds offer greater control of your investments compared with other super investment vehicles because you can not only select the stocks or fixed interest products you invest in, but you can also invest in property, art, collectables and even strange things like race horses.

You can have up to four members in your DIY super fund and most funds are made up of two members, namely husband and wife.

One of the key benefits of DIY super is its tax effectiveness. Many small business owners are attracted to DIY super because their fund can purchase their business property and rent it back to them. Holding the property inside of superannuation can often be more cost effective.

DIY super funds can also provide greater flexibility with estate planning.

But while there are many benefits to DIY super, it is important to note that there are many rules and regulations that come with taking on the responsibility of running your own fund. You can find out more about those on this site.

The Switzer Super Report website is a font of information on DIY superannuation, from education on how to set up a fund and regulatory compliance to advice on shares to buy or the best fixed interest rates.

Search our website for more information, or sign up for a 21-day FREE trial of the Switzer Super Report, Australia’s leading investment newsletter and website for DIY super trustees.

 

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Anyone should, before acting, consider the appropriateness of the information in regards to their objectives, financial situation and needs and, if necessary, seek professional advice.