Reaping the Rewards of Your Self Managed Super Fund

Making the decision to manage your own super fund is not a matter of 'setting and forgetting'. With the increased freedom you have you also have an increased need to keep abreast of changes and opportunities which could affect your retirement money. In order to make your decision to switch to a self managed super fund there are several things you can do. While you may still have a financial advisor whose advice will be invaluable to you in the management of funds, this is your future, Mister babache so you need to grab it with both hands. Here are a few ways in which you can do that:

Keep Abreast of Developments

If you've never had much of an interest in the finance world or how the market is going, now is the time to start. With the overload of information this can seem like a daunting task but start small with a few publications that explain things in a way that you can understand and start from there. Subscribe to a few websites that give up-to-date real time information and monitor any developments, legislation or changes that could represent an opportunity. As soon as you hear about one, call your financial advisor to discuss it. While he or she may be very good at their job, there's nothing like the motivation of your own money to keep you on the ball.

Tax Breaks--Learn Them

Make sure you understand what tax breaks you are entitled to and where you can save money. The best way to do this is in consultation with your financial advisor and your accountant--you could be eligible for thousands and thousands of dollars' worth of tax breaks, but you need to know about them first!

Co-Contributions

The Australian government has a co contributions scheme which allows you to contribute extra money to your super fund. Remember to register for this service and you could add a significant amount of money to your retirement.

Think in Real Terms

If you are planning to contribute extra funds, thinking in terms of practical things you want will help you find the motivation to do so regularly. Imagine your retirement and all the things you'd like it to include. If your vision of your retired life features, say, a boat or a regular travel, you should factor in that amount over the years left until retirement and fuel yourself with dreams of what will be.

Learn Along the Way

In the beginning, it is important to stay in regular contact with your financial adviser so that you don;t miss opportunities or make poor decisions. No one becomes a financial expert overnight simply by making the choice to start an SMSF so it is a good idea to learn from your adviser until you are confident making decisions about your future. With some careful learning and research you can grow your retirement fund into something to really look forward to.

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