Take control of your super with a self-managed super fund (SMSF)

• Are you looking for greater control over investment decisions for your super??
• Do you want to invest your super savings in assets such as direct property?
• Do you want more flexibility than you would get with a conventional super fund?
• Do you and your partner have around $200,000 is super?

How does and SMSF arrangement work?

A self-managed super fund (SMSF) is a super fund you manage “yourself “– providing greater control over your super and more flexibility than with a traditional super fund arrangement.

An SMSF provides benefits for its members in the same way as any regular super fund. However, there are certain rules and regulations trustees of an SMSF must adhere to.

What are the advantages for me?

Setting up and being responsible for your own SMSF has its advantages, including:

• More control - You determine (often with an adviser)an investment strategy and the way it is implemented
• Greater range of investment choice - Generally able to invest in assets such as direct property, art and collectibles (although there are some limitations imposed by superannuation law and the fund trust deed)
•  Control over costs - Because you can control the investment management, you may be able to minimise the fees and transaction costs incurred by the investment portfolio. However, for account balances less than $200,000, the costs associated with owning an SMSF are potentially greater than other funds
• More opportunities for tax-effective investments - You may be able to borrow to invest in income-producing assets (such as an investment property or business premises) with the SMSF claiming certain borrowing costs, such as interest and depreciation as tax deductions
•  Possible increased net returns - With the potential for lower costs, and a different investment mix, it may be possible to have a more effective investment strategy boosting overall returns

Things you should consider

There are many rules and regulations pertaining to running and establishing an SMSF.  It is vital to seek professional financial, legal and tax advice specific to your own individual circumstances as part of the decision making process before heading down the path of establishing an SMSF.

• An SMSF can have no more than four members
• The trustees of an SMSF can be either individuals or a company
• No member of the SMSF can be an employee of another member, unless the member is a relative
• Trustees must carry out their duties without payment
• When rolling over any super from a traditional fund if you have any insurance IT IS EXTREMELY IMPORTANT do not cancel any insurance until you have  insurance is your SMSF

As a trustee of the SMSF, you are bound by law to responsibly manage the fund and are personally liable for the fund’s actions. Whilst tasks associated with administering your SMSF can be delegated, the Trustees are ultimately personally and legally responsible.

• As a trustee, you will be required to set aside time for the ongoing management of the SMSF. Alternatively you can seek, at a cost, professional assistance from Azure Group
• Also a member of an SMSF does not have access to the Superannuation Complaints Tribunal should something go wrong

For more information, please contact Azure Group Wealth at ourteam@azuregroup.com.au or (02) 9238 1188.

For more information on our Wealth services please visit the Wealth Section. 

DISCLAIMER/WARNING – GENERAL ADVICE ONLY

The information provided in this article is General Information only, so does NOT take into account your objectives, financial situation and needs.

Before acting on any information contained in this website you should consider the appropriateness of the advice having regard to your objectives, financial situation and needs.