Self Managed Superannuation Fund

Guardian Vaults – The easiest SMSF Option

The creation of Self Managed Super Funds (SMSF) has allowed investors to take control of their superannuation and be more decisive and proactive in their future investments. While this has allowed many investors to achieve a greater return on their investments, than would otherwise have been available in superannuation funds, the risk factor also increases as there are many dubious claims and traps waiting for the investor. Many of these involve purchasing property through your SMSF. It is therefore prudent to assess the best way to invest in your SMSF.

There is much conjecture about the pros and cons of investing in property. While property is an asset class that is popular to invest in, purchasing through an SMSF is quite challenging and restrictive. The legislation is extremely specific about what can be purchased, how it can be funded and who can use it. As with all SMSF’s, property can only be used for investment purposes. They cannot be lived in by the owner or relatives or used as a holiday home. The funding of the property will be dependent on how much your SMSF has to invest. If there is enough cash available the property can be purchased outright. But this is not the best use of capital. If a loan is required it can only be done through what is known as a limited recourse borrowing loan. This facility has certain restrictions such as the loan not being able to be used to fund improvements, higher borrowing costs and the SMSF requires additional capital to fund the repayments. Any tax benefit the property generates is against the SMSF earnings at a rate of 15%, not the personal tax rate, which is much more effective.

The key to investing is to ensure you maximise returns while also minimising risks. This investment advice works perfectly well for gold bullion. While Australia is the second largest producer of gold in the world our SMSF hold less than 0.5% as total assets. Purchasing simple to store assets like bullion do not receive the attention of other assets as there is no money to be made for the spruikers of grand investment schemes as the individual can do it themselves. With cash deposits offering limited returns, the speculation of the share market increasingly risky and property as explained, purchasing gold bullion is the ideal investment class. There are a number of advantages to buying physical gold. It offers a strategic hedge against inflation, it is a defensive investment against geo-political circumstances and a tangible and flexible asset that can easily be bought and sold in coins or bars. With access to 24 hour gold markets the investor can own it immediately.

With a safe deposit box or vault provided by Guardian Vaults, investing in gold through your SMSF is the ideal investment. You own the real thing, it is registered in your name and stored with safety and security.

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