Using your SMSF to buy gold bullion.

Posted by Muller Lukacs on November 11th, 2017

When it comes to financial investment, you can opt for your SMSF to buy gold bullion, which means buying gold for your self-managed super fund (SMSF). A self-managed super fund is a superannuation trust structure that offers financial payment to its members upon retirement. SMSF members also act as trustees of this fund, and it can boast between 1-4 members. By having more control in the way the fund is managed, you can choose to purchase gold as part of your investment portfolio. It’s a potentially lucrative investment, particularly during tough economic periods when the value of gold appreciates because on speculation. 

How to Buy Gold using an SMSF

One of your options is to convert a portion of your investment into SMSF gold bullion by buying physical gold. You can find many bullion dealers available to provide you with secure storage facilities for your physical gold. Owning physical gold comes with enormous responsibility, and remaining compliant means having a proper facility to store your precious metals. You can rent a secure vault to keep your gold, and you can also think about getting it insured. It’s also advisable to seek advice from experts and learn everything you can about investing in precious metals. 

Benefits of an SMSF

Opening a self-managed super fund and holding gold bullion makes your investment portfolio more balanced. We face increasingly unstable financial markets, and if you don’t want to see your lifetime of super savings evaporate when the next major economic crash happens, it’s wise to invest in SMSF gold bullion. You cannot underestimate the value of precious metals because during the Global Financial Crisis that occurred recently, the value of gold doubles while that of shares halved. And the good news is that gold dealers are prepared to shoulder the responsibility of holding your investment in secure vaults for your personal and financial safety. 

The bigger the SMSF, the more inexpensive it becomes to manage due to economies of scale. In fact, it can end up providing substantial cost savings compared to other funds you can find on the market. You also have flexibility in your choice of investment. You have total control of the fund’s assets, and you can decide when and how to pay the pensions. Members can also enjoy additional benefits because they can exercise more control over their tax liability. And if a member dies, you have more flexibility when it comes to paying funds to their beneficiaries. 

Seek Financial Advice

If you’re thinking of setting up an SMSF, it’s essential to seek expert financial advice. It will help to determine whether the fund is suitable to your needs. During such discussions, you can also assess its membership as well as their obligations. You also need to discuss whether there can be any likely liquidity issues. Some recent changes have been introduced with regards to SMSFs, and you need to keep abreast so that you can make wise decisions. The superannuation rules in Australia have undergone some significant changes which have taken effect, and you should learn about them before you invest in SMSF gold bullion.