Is an SMSF right for you?
While many people are happy to have their super fund manage their investments for them, some prefer to be more hands on. A self-managed superfund (SMSF) may give you the control you want, but it’s not the only option.
SMSFs suit people who are committed to putting in the time necessary to manage their investments and meeting their legal and administrative obligations. While some of these functions can be outsourced, there are costs involved, which is why SMSFs tend to suit those with larger balances.
This has lead to a new wave of products that allow investors to be more active in their superannuation, while still having the support and protection enjoyed by APRA-regulated funds, like industry and retail funds.
Direct investment options, such as AustralianSuper’s Member Direct, give engaged investors the opportunity to choosetheir own investments, while still accessing the low fees, insurance cover and professional investment expertise offered through an industry fund. Unlike an SMSF where the members are trustees, AustralianSuper is the trustee and takes care of all the legal and administrative requirements for you.
Investors in AustralianSuper’s Member Direct option can access real time trading inshares in the S&P/ASX 300 Index and some exchange traded funds (ETFs), a selection of term deposits and a competitive cash account via an online platform.
By accessing direct investment options within an industry super fund,members can control how much of their retirement savings they want to invest themselves, within limits,while benefiting from the scale and investment expertise of a large super fund.
AustralianSuper’s Group Executive, Membership, Paul Schroder, said, “The development of direct investment options like AustralianSuper’s Member Direct platform is recognition that many people do want more control, and to be more engaged.
"AustralianSuper’s Member Direct is proving to be an attractive option for those members who want more control over their portfolio without the red tape of reporting and compliance obligations.”
“Member Direct suits people who want to be actively involved in managing their investments, but don’t need the complexity of an SMSF.”
As with all financial products, you need to choose the one that suits your individual needs and circumstances. This is where a professional financial adviser can help.
If you would like to find out more about AustralianSuper’s Member Direct option, visit AustralianSuper.
This article has been sponsored by AustralianSuper Pty Ltd ABN 94 006 457 987, AFSL 233788. It contains general advice and does not consider your personal objectives, financial situation or needs. Before investing in any financial product you should read the relevant PDS and consider if it is right for you. For more information, please visit australiansuper.com
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