Self Managed Super Funds
In this section on self-managed super funds (SMSFs), we explore:-
- The seven main advantages of SMSFs.
- How our clients benefit from seeing their fund in real time – with balances updated every day.
- Why a SMSF is not for everyone.
SMSFs are a fantastic way to build, control and protect wealth.
Although not for everyone, SMSFs also present options not available through typical public super funds.
Book Your Free Initial Meeting
Call us on 03 9899 7511 to book your free initial meeting or
SMSFs have seven main advantages:-
- Where balances are over $200,000, they can be cheaper to run than being a member of a public super fund (which charge a set % of your balance – which means the higher your balance, the more you pay).
- They allow you to control what happens with your super and know where it is invested.
- They allow you to dictate Capital Gains Tax outcomes
- They present investment opportunities not offered by public funds – in particular direct property.
- They allow you to borrow (under strict rules) to buy property, shares and other assets.
- They allow you to keep your own life and income protection insurance (and thereby avoid adverse outcomes from your employer changing their default fund insurer).
- Strategies and estate planning that cannot be adopted within typical public super funds.
Many of our clients have their own SMSF for which we attend to their reporting, tax and compliance needs. We do so by using a specialised accounting program which provides real time reports. Our clients can log in and see their fund, access a wide array of reports and make decisions based off up to date information.
And because our clients’ SMSF are reported in real time, after year end we can more quickly turn around audits and get clients their refunds.
But a SMSF is not for everyone.
The following are good reasons to not have your own SMSF:-
- You are don’t like attending to paperwork.
- You may live overseas for more than two years.
- You have no interest in investments.
- You have collectively less than $200,000 in super.
- You don’t wish to invest in a wider range of investments.
- You don’t wish to obtain better estate planning outcomes.
- SMSFs are also inappropriate for those who wish to not have to deal with paperwork in retirement, wish to go on long holidays or may have health and capacity problems. We welcome the opportunity to discuss any of the above with you.
- Get it wrong and it could all prove horribly costly with penal tax rates of up to 45%. Furthermore, even minor breaches can now result in each trustee being fined up to $12,600.
Book Your Free Initial Meeting
Your first meeting is free.
That way, we can gain a much better understanding of your situation and explain how we can assist you. As accountants though we are not licensed to provide financial advice – but if there is a need, we can refer you to a specialist.
Call us on 03 9899 7511 to book your free initial meeting or