You may find that accessing your super is the best way to meet your financial needs in a given situation, for example in the early stages of the pandemic. Individuals are able to legally access the funds in their super earlier but there are conditions of release.
Common conditions of lease:
Reaching your preservation age and retiring (preservation age is between 55 and 60, depending on the individual’s date of birth)
Reaching preservation age and starting a transition to retirement income stream (TRIS)
Ceasing employment once you are 60 or over (even if you don’t retire)
Being 65 or over (even if you don’t retire)
Death
There are more conditions of release that allow individuals to access their super early:
Suffering from financial hardship (more resources due to Covid-19)
Compassionate grounds
Diagnosed with a terminal medical condition
Temporarily/Permanently incapacitated
First Home Super Saver Scheme
Temporary resident departing Australia
If you terminate gainful employment with less than $200 in your super account
Setting up an SMSF fund is the simplest step. Establishing a fund which delivers you consistent returns from your investments is much more difficult.
Investing successfully involves determining precise goals and picking investments which will effectively achieve those goals. The advantage of SMSFs is that you can build a portfolio which reflects your short-term and long-term goals in response to changing market conditions.
In an SMSF fund, your investment options are:
Australian and international shares (listed and unlisted)
Residential or commercial property
Cash and term deposits
Fixed income products
Physical commodities
Property
Collectibles
Before you begin investing, consider what might be the best way to diversify your portfolio. How you portion your investments will depend on your funds, the market, and your goals. Regardless of what your plan is, diversification should be a priority.
Choosing an SMSF as opposed to an industry or retail super fund provides you with more flexibility, but also with more responsibility. Researching before investing is key if you want the best out of your SMSF.
