Use your super to generate a fixed income

A Self managed super fund or SMSF allows Australians the ability to use their superannuation for investment purposes. They cannot, however, buy a home they plan to live in when using your super funds.

The SMSF can help purchase a property and generate a fixed income. One to four members can be part of a fund. Each member can decide how they want to invest their superannuation.

This could be investing in shares but many people include their homes in retirement and investment plans.

It can be difficult to set up a SMSF. To fully understand your responsibilities, and set up the SMSF correctly, it is best to consult a professional financial advisor.

An SMSF has the advantage of being able to invest directly in property investments. The funds can purchase commercial or residential property. A fund can borrow up to 50% of the property's value. Due to the nature and structure of the legal structures, this activity is subject to rules.