• Fri. Apr 19th, 2024

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SMSF Superannuation Or Industry Funds – Which One Is Better?

How it would be to live in a society where everyone likes same things? Or worse, in a society where there will be no choices? I guess not interesting at all. During our lives we have to make many decisions, some very important and other less significant, and thanks God, there are many options that can help us to make the right decisions.

When talking about important decisions, many people are concerned about their life after retirement. A lot of people enter their retirement age unprepared for it. After a lifetime of hard work, we all should be prepared to enjoy the rest of our life without serious problems and concerns. However, you may be wondering how to do that? One way is to invest in a super fund.

Investing in a super fund is one effective way to plan your future financial security, and is available in different types. Deciding on the model you want to use, the best thing will be to go to a professional and to discuss the options in detail. The most popular super funds for many Australians are the SMSF superannuation and the Industry fund. If you are interested to know more about them, here is a general information which can give you a better insight about what can you expect from these super funds.

Control – When talking about control, the SMSF Superannuation allows you to have more individual control over your funds than the industry super fund. The industry super fund is a type of fund that you set and wait, which means it doesn’t require lot of effort from you. On the other hand, with a self superannuation, you will be required to be a trustee of the fund, which means certain rules must be followed and respected.

Flexibility – The SMSF Superannuation is a self-managed fund which allows more flexibility. However, with a Superannuation Self Managed Fund, you will be required to work closely with financial professionals and also with other members of your investment team.

Investment Options – One SMSF Superannuation includes numerous options, thus requires more work from you and also involves more risk. An industry super fund allows you a limited range of options, based on your risk profile.

Conclusion – The SMSF Superannuation provides more flexibility, and requires more work and carries higher risk. An industry super fund on the other hand, has a tendency to be more stable and requires less effort.

By Anthony Hendriks

The life of the party, Anthony is always up for spending some time with family and friends, when not blogging of course! Ever since a child, his love for books of mystery, race cars and travelling keeps on growing so it's difficult for him to single out that one all-time favourite hobby. If there's one thing he hates, though, it's having pictures taken but you already guessed that from his choice of plant photo for the blog.