Chihawk - here in Australia, we have what you call "Pension...

Chihawk - here in Australia, we have what you call "Pension Funds", but here they're called "Superannuation Funds".

These can be in a managed fund situation, with a large private fund or with a government fund, or we can set up a Self-Managed Superannuation Fund (SMSF) and do it ourselves.

The advantage of a SMSF is no fees to pay, and we get to make all our own decisions re the investment strategies, etc.

SMSFs are subject to all sorts of rules and regulations, but they have huge tax advantages, not least of which is that once one is over 60, and drawing a pension from the fund (i.e. in pension phase as opposed to accumulation phase), then all pension payments to oneself are tax free, AND all earnings within the fund are tax free. So - no Capital Gains Tax on profits from trades or investments, no tax on dividends, etc etc.

Super Funds are the most tax effective place for most people to put their money - BUT - if you're a fair bit younger, you don't have access to that money until you're at least 55. The far-sighted will start accumulating in a Super Fund when they're young, and accept that they can't touch the money till they're 55 - and just let compounding work for them. And a SMSF means they can trade in the fund - even at a younger age it is still more tax effective (15% tax on earnings in the fund as opposed to one's usual marginal tax rate).

So, several people on here, including me, would be trading and investing inside their SMSF.

Does that make sense?