Self Managed Super Funds
Self Managed Superannuation Funds (SMSF) are a retirement savings system that provide flexibility and control. People who seek to fund their retirement independently seek SMSF as a major factor in this financial strategy.
In the past, most people invested their Superannuation in Retail or Industry Superfunds where their employers contributed a percentage of their salary. Fund managers then made investment decisions on behalf of the members of those Funds.
This landscape has dramatically changed in the past 10 years, with over 1 million Australians having switched from Retail or Industry Funds to SMSFs. The reasons for the change include the additional control over their Super and potentially lower fees.
Some of the advantages that a SMSF can offer are as follows:
- A SMSF gives you total control of your Super by allowing you to choose where you invest your Super Benefit. Many of our clients who are disappointed with their Superfund's performance or simply think that they can do a better job investing their Super Benefit themselves are choosing to establish and manage their own SMSF.
- Having total control means the members of the SMSF can invest in a wide range of investments. For example, with a SMSF, you can invest in Term Deposits, Australian & International Shares, Residential & Commercial Property.
Some of the other key features of an SMSF are:
- A SMSF is a fund with less than five members. Each member is also a trustee of the fund (alternatively the fund can have a corporate trustee structure).
- A SMSF can provide tax effective vehicles for you to accumulate and transfer wealth.
- A SMSF must be maintained for the sole purpose of providing benefits to members upon their retirement.
- Trustees are required to prepare and implement an investment strategy for their fund. This controls the way contributions are invested with wide flexibility in investment choice, for example, direct property, managed investments and direct shares can all be included in the portfolio.
- Approved auditors must be appointed and tax agents, accountants and financial advisers may also be involved in the running of an SMSF, and
- Ultimate legal responsibility rests with the individual trustees (ie the members of the fund) even if assistance is outsourced to the above professionals.
SMSFs are a great vehicle to take back control of your Super but they are not right for everyone. Managing a SMSF takes time, responsibility & knowledge so it is important for you to understand what is involved in managing your SMSF. It may not be easy but that is why we are here to help make it easy for you.
We can help you prepare in making the most of SMSF opportunities without presenting any risk to you at all. Below is a list of our superannuation solutions:
Organization of fund through complete SMSF package
- Filing and binding of fund documents
- Documentation of fund trust deed, fund establishment and appointment of trustee
- Application of membership, fund ABN and tax file number
Comprehensive management and delivery of fund
- Preparation and documentation of statements
- Auditor assistance
- Filing of fund regulatory return
- Review of fund compliance
- Regular support both technical and operational
- Legal professional assistance to understand pertinent deed materials
We also assist in the preparation and documentation of all pension-related items including calculation of pension, deductible amounts and rebates as well as those related to PAYG. We make sure you have complete assistance coming from our proficient specialists when it comes to complete compliance and advice pertaining to SMSF and its operation.
Given the right circumstances, a SMSF has the potential to provide you with a powerful and tax effective wealth accumulation vehicle,while at the same time giving you considerable flexibility and control over your retirement investment affairs.
SMSF’s can be more cost effective than other options but only in situations where the amounts held in those funds are of a sufficient size to benefit from economies of scale.
We will only recommend the establishment of a SMSF in situations where we can clearly demonstrate how you can obtain significant long-term value from establishing such a fund.