The world is ever moving, constantly changing, which doesn’t exactly suit most of us, particularly those who prefer to have more control over their lives. While in the past people knew they’d spend decades doing the same job, the reality is considerably different nowadays, with the career sector also undergoing certain changes. While this is good in the sense that it provides more possibilities for switching from one job to another in search of better working conditions, the bad news is there is unstoppable retirement age increase which leaves many wondering whether they’d actually ever retire and reap the benefits of their life’s hard work.
The silver lining, however, lies in the superannuation funds, and the one that’s proved to be the most successful by far is the SMSF. Having the chance to combine financial forces with your spouse, family and friends gives you better control over your money and the security enough that upon taking care of the fund, you’d be able to get your pension once retired. Of course, there are certain rules you’d have to abide by, such as make sure you don’t breach the sole purpose of this fund, that is only use money you have in it upon retirement and not before, otherwise you’d be faced with penalties.
Though there is the option to go through the management on your own with a DIY approach, it’s advisable to seek professional guidance so you’d have more knowledge on the management itself and use up more of the fund for your benefit, for instance by investments, be it in shares, residential or non-residential properties. Unlike in the past, people now have the possibility to borrow money and invest through the SMSF thanks to the SMSF loan. This is the ideal solution for people who wish to invest but don’t have the assets enough in the fund to do so. Though it might seem like the perfect way to earn some more money of your own as in the case of purchasing property, that would mean breaching the sole purpose of the fund – even investments are fund based and money earned are in fact to be saved for your pension.
Investments in property through the superannuation fund can be ideal for you concerning taxes because you’d get to pay less than you would if the property goes to your personal name. There are certain steps that ought to be taken before you can actually get an SMSF loan and that’s where reliable companies can help you. Before getting all the contracts and paying out deposits, it’s good to get a pre-approval. Once you obtain it, you’d get the Bare Trust deed document that is the proof that the property would legally belong to a separate property trustee (e.g. a company with the members of the SMSF as company directors). You’d be expected to pay the deposit right after getting the purchase contract, and only then have the loan approval.
Proper guidance can ensure the successful outcome of getting a loan and investing it properly so your retirement days would be well taken care of, giving you the chance to avoid stress and worries of the future and look forward to it.