Many people save their whole lives for retirement, only to find that when the time comes, they don’t have sufficient funds to live the way they’d always dreamed of. No longer can you sail around the world for the rest of your days with a superannuation fund of $100,000 – the figure for a comfortable retirement is getting higher and higher.
With that in mind, taking control of your retirement finances is going to be a great way to ensure comfortable living heading into the twilight stages of your life. One of the best ways to do this is by starting a self-managed super fund (SMSF).
An SMSF loan can boost your opportunities and help you to save!
It’s a complicated process, and certainly isn’t worth doing for everyone, but once you’ve made the decision to start one up, an SMSF loan from Redrock can boost your opportunities and help you to save!
Who should set up an SMSF?
Anyone with enough money, and time, should be considering getting into an SMSF fund as a way to plan their retirement the way they want. However, without enough money, the risks are very high and you could end up losing out. It is recommended that you have a minimum of $200,000 in the fund itself, but there are external costs associated with maintaining the trust fund and keeping the books in order.
Once the trust is set up and you’ve gone through all of the required steps in the process, you’ll be ready to start investing, however. The Australian Securities and Investments Commission’s Money Smart website states that spreading out your investment is a great way to ensure you don’t fall into the trap of keeping all of your eggs in one basket. Doing so will mean in a market crash, or if one of the investments fails, you’ll at least have something else to fall back on.
Buying in Bayside might be a little out of reach, but an SMSF loan can get you over the line.
Is it a risk worth taking?
If you look at the ways a property, for example, gains value over a decade, it’s absolutely a risk that should be considered. The CoreLogic RP Data Pain and Gain Report from December 2015 shows that, of the homes sold in the Melbourne suburb of Bayside last year, 95.6 per cent of them made capital gains that averaged $508,000! Buying in Bayside might be a little out of reach, but an SMSF loan can get you over the line.
It’s certainly not for everyone, but if you have the time and the money required to make it work, you’ll be sitting pretty on a healthy retirement fund so you can really enjoy that deserved time off. Get in touch with Redrock today to discuss the best options for you.