It’s never too early for young Australians to begin thinking about saving for retirement. In fact, the earlier you start, the better. Investing more now means you’ll have a more comfortable retirement – and the younger you start, the more time you’ll have for your investment dollars to accrue interest.
One of the most popular options for retirement savings these days is the self-managed super fund (SMSF), a trust structure in which the members are also the trustees. Each individual investor has a great deal of autonomy over how their dollars are invested and when. This brings a financial freedom, but it can also be a source of pressure. Smart decision-making is key.
Making big-picture investment decisions
The exciting thing about opening an SMSF is that you control your own destiny. According to the Australian Taxation Office, anyone with a self-managed fund is in charge of making all the big decisions for themselves. If you want to take out new self-managed super fund loans to bolster your investment portfolio, that’s entirely up to you.
There are also drawbacks to this. First of all, you’re incurring a lot of risk personally when you open an SMSF – if your investments backfire, there are consequences to deal with. Furthermore, any logistical complications such as complying with super and tax laws are yours to address.
Staying on top of your obligations
SmartCompany notes that when you’re running an SMSF, one of your key obligations is to have a rock-solid strategy for keeping records. You need to have detailed accounts of every dollar you’ve invested and what sort of return that money is yielding. Additionally, if you’ve taken out low-doc loans to add to your investment capital, that needs to be accounted for.
Every year, SMSFs are audited by the government to check for compliance issues. You want to be sure that when that happens to you, you’re ready for it.
Bolstering your existing retirement assets
To really get the most out of your SMSF, you need to have strong investments that will have real value over the long haul. Sometimes, these investments are tough to make because you don’t have enough money. Luckily, there’s a solution to this – getting SMSF loans from Redrock.
Say you’re looking to invest your SMSF dollars in buying a house, but you only have half the money. No problem at all – just borrow the other half, invest in the property now and pay off the rest later. Your portfolio grows right away, and your loan repayment terms will be easy and flexible. It’s a surefire way to improve your investing outlook.