Self Managed Super Fund, SMSF

Wouldn’t you prefer to have more control over the decision-making process of your retirement funds and for these decisions to align more closely with your personal goals?

Many people wonder what all the fuss is about self-managed super funds (SMSF) and why you would bother setting one up.

Well, if you’re serious about having control of your money, the following benefits could be very interesting to you:

  1. Investment Choice and Transparency A wide range of options are available to you, including direct investment into property, shares, managed funds, even collectibles. It all comes down to your personal preference and what investment class you may be passionate about (or comfortable with).
  1. Tax Strategies While you contribute to your superannuation in the accumulation phase, the tax on your income is only 15%. Then eventually in the pension phase after you turn 60, there is no tax payable. Not even capital gains tax.
    And did you know that excess franking credits from shares or managed funds held within your SMSF can offset tax payable on other earnings within your SMSF? Even better, if you have no tax payable in the first place, these franking credits could give your SMSF a tax refund!
  1. Flexibility You can run a mixture of asset types and adjust the mix quickly if your personal circumstances or market conditions change dramatically. You can even have up to 3 other members (family members or partners) contributing to the SMSF, meaning a far greater fund balance is possible.

A SMSF isn’t suitable for everyone though.

A starting balance of around $500K is generally preferable to make the fee structure cost effective compared to standard industry super funds. There are ongoing costs involved and annual ATO compliance requirements that need to be adhered to as well.

If you are considering a Self Managed Superannuation Fund please feel free to call us on 02 8203 4160 or contact us via the handy online contact form below.