Why Are Millennials Signing Up for SMSF Investments?

Why Millennials Turn to SMSF Investments

SMSF investments show a sign-up surge from millennials. Australian Investment Exchange (AUSIEX) saw a 9.3% increase in SMSF accounts opened by millennials compared to last year. ATO statistics show that the SMSF entrants are getting younger and younger each year—and millennials are the largest cohort entering the system. 

The surge happens because of some factors. We uncover these key reasons, and they could also open the opportunity for you to set up your SMSF and start having SMSF  investments that suit your financial goals. 

Technology Advancement for Easier Investment Management

Millennials are digital natives—they grow up with technology. They can access all kinds of information on their phone, including managing their investment with an app.

They also have social media, wherein they can follow finance influencers who can help them know more about financial planning, including SMSF investments. It makes being financially literate a fashion.

The ease of accessing information makes this generation more financially savvy than the previous generations. They understand that having more knowledge, flexibility and choice of investments, and control of their finances could benefit their future.

More Information Means More SMSF Investment Options Known

With a sound understanding of SMSF investments, millennials explore different investment opportunities. They know that there are plenty of options. 

For instance, here at SMSF Loans Co, we provide various services that help women and men increase SMSF trustees’ purchasing power to invest in real estate and grow their investment. We’ve partnered with multiple lenders to ensure our clients get the best loan rates and strategies to boost their SMSFs and secure their retirement.

The more you talk to the right professionals about your SMSF investments, the more you know about your options and the better your SMSF investment strategies are.

Regulations Renewal and Cheaper Compliance Make SMSF Investments More Affordable

Better regulations are another reason SMSF investment has become attractive to millennials. The government passed a superannuation reform called ‘Your Future, Your Super,’ which improves the overall super system and makes it easier to compare products.

More than that, due to the improvement in technology, access to improved systems and offerings could cut the maintaining SMSF costs far more than years before.

Signing up SMSF documents

For a long time, the Australian Securities and Investments Commission (ASIC) estimated that $13,900 and 100 hours of work are needed to maintain an SMSF. However, the recent data from the Australian Taxation Office (ATO) estimates that the median SMSF maintenance cost is $3,923 with two members per account. This is a leap in cost efficiency, making SMSFs affordable for wider age groups, including millennials who are just starting their jobs.

Setting Up SMSF is Easy

SMSF industry is highly regulated, so making an error is just too costly. At SMSF Loans Co, with our practical approach and systematic process, we make setting up an SMSF uncomplicated. 

We are here to take care of the entire process of establishing an SMSF account for whatever goal you have in mind. The first thing that we assess is the feasibility of the SMSF option for your plan. We will make sure that the SMSF is the right option for you. We will not recommend an SMSF to anyone unless it offers the potential to outperform your investment goals. 

Our professionals will ensure your fund will be eligible to receive contributions and tax concessions and take out loans while keeping the administration in mind. From the trustee structure, the Trust Deed, ATO application, and Tax File Number to ABN registration, your SMSF is in safe hands. Fill out the form on our contact page to get started.

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