I often get asked who should consider an SMSF to build retirement wealth. In my personal experience, there are two groups of people who really benefit.
1. Business Owners Paying High Rent
If you own a business and pay significant rent, one strategy I’ve seen work really well is buying the business premises through your SMSF. Your business then pays rent to your SMSF, which not only builds your retirement wealth but does so in a tax-effective way. Personally, I think this is one of the smartest strategies for business owners looking to make their money work harder for them.
2. Investors in Shares & Property
For those who enjoy researching investments or have a passion for property and shares, an SMSF gives you the control to invest the way you want. Of course, if you prefer a hands-off approach, you can work with a financial advisor to create a diversified portfolio that balances growth and safety. From my perspective, having that control—or choosing the right advisor—can make a big difference in your long-term wealth creation.
Why I Believe SMSFs Are Powerful
One of the biggest benefits I personally value is the tax efficiency. Once you meet the retirement conditions, you can sell shares within your SMSF and capital gains tax (CGT) is disregarded. On top of that, retirement pension payments are tax-free, which can make a huge difference to your lifestyle in retirement.
In my experience, an SMSF isn’t for everyone—it works best if you want control, are willing to engage with your investments, or have a business strategy that benefits from property ownership within super. But for the right people, it can be a highly effective tool to build lasting retirement wealth.
Merry Christmas and a Happy New Year!