A DIY Superannuation Fund is easy to establish and the benefits to your retirement planning can be extremely financially rewarding. Not only does setting up your own Fund have the ability to change your future lifestyle but it can benefit your future generations too.

A major advantage that has come about from September 2007 is you can use your DIY Superannuation Fund to borrow money. This is particularly of interest to those who want to acquire property in their Fund.

Other benefits of a DIY Superannuation Fund are:

• Maximum control – you make your own investment decisions and you can tailor your investment strategy to suit your financial needs.
• Investment flexibility – you can invest in a large variety of financial products or investments that are not normally available via traditional retail funds. For example, acquisition of property and other permitted investments, including shares, bonds, mortgages and fixed interest loans can be made by your DIY Superannuation Fund.
• Tax benefits – providing you are retired and over 60, any payments made from the Fund are tax-free.
• Bankruptcy protection – assets in your Fund may be protected in the event of bankruptcy, a particularly relevant point for business owners.
• Estate planning – how you take care of your family after your death is usually of high concern. Adding life insurance to your Fund can give additional peace of mind.
• Family wealth accumulation - your Fund has an indefinite life so it can provide benefits from generation to generation. With careful planning you can allow multiple generations to accumulate their savings in your Fund. You can structure your Fund to consider the three stages in the lifetime of individual members:
• Accumulation Superannuation stage – contribution to the Fund and income accumulation
• Pension stage – drawing down from the Fund
• Estate planning - the passing on of the individual members’ assets in the Fund to the next generation
• Asset retention – you may change investment managers (if you have one) without having to sell your investments which can incur capital gains tax.
• Centrelink benefits – DIY Superannuation Fund assets and income do not count for Centrelink purposes until Aged or Service Pension age. A husband or wife may receive a full Centrelink age pension and Spouse pension when one is pension age, while the younger partner has all assets in the Fund.
• Link to Pension Fund – your DIY Superannuation Fund becomes your DIY Pension Fund, therefore there are no legal costs at the pension commencement.