Self managed superannuation funds (SMSFs) have become increasingly popular. While establishing an SMSF can give you greater control and flexibility when planning for your retirement, they also have extensive administrative and compliance requirements. It’s important to understand more about SMSFs to determine if this option is right for you.

What is an SMSF?

SMSFs are sometimes referred to as ‘do it yourself’ super funds. Like other super funds, SMSFs invest contributions from members, provide benefits to those members on retirement and provide death benefits to beneficiaries in the event of the member’s death.

The principal difference between SMSFs and other types of superannuation funds is that the members of an SMSF are also the trustees, or directors of a corporate trustee. Amongst other things this means they are required to prepare and implement an investment strategy for their fund and manage the payment of benefits.

SMSFs also provide wider investment choice than other super funds, with options such as direct property, managed investments and direct shares included.

The members of an SMSF must appoint approved auditors, and may also choose to involve tax agents, accountants and financial planners. However, the ultimate legal responsibility for the fund’s ongoing compliance rests with the individual trustees.

What are the advantages of SMSFs?

SMSFs offer a range of benefits, including:

• increased control over your retirement funds and how they are invested;
• wider investment choice than public offer funds;
• the scope to use 100% of the fund’s assets to acquire business’s real property and lease it back to the business;
• your SMSF can move with you from job to job;
• may provide a range of options for estate planning and benefit payments.

What are the drawbacks?

• Each trustee bears a high degree of responsibility to ensure that their trustee duties are performed and exercised in the best interests of fund members;
• There is a risk of tax penalties if the fund becomes non-complying;
• Running an SMSF can be demanding and time consuming;
• SMSFs incur a range of extra costs, eg auditing of accounts, tax and regulatory return administration and supervisory levies.

Prestige Wealth Partners can:

• Determine if a self-managed superannuation fund (SMSF) is an appropriate investment structure for you.
• Establish your self managed superannuation fund and arrange for a trust deed to be prepared and a Tax File Number and ABN are registered for the SMSF.
• Prepare and review your fund’s investment strategy taking into account your risk profile, income tax minimisation and estate planning preferences and possibilities.
• Assist you transferring your benefits from your existing superannuation funds or overseas pension accounts into your self managed superannuation fund.
• Help you minimise tax and maximise your superannuation contributions
• Arrange pensions and lump sum payments from your SMSF.
• Keep you informed of changes to relevant legislation and its impact on your self managed fund.
• Refer you to an experienced SMSF with discounted rates

Speak to Rebecca Newton and let Prestige Wealth Partners help you maximise your superannuation opportunities.

For more information about self managed superannuation funds – and any other form of superannuation investment product – please download the Introduction to SMSF Fact Sheet provided by Financial Wisdom or contact Rebecca Newton using the form below.

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