Self-Managed Superannuation
Self-Managed Superannuation Funds (SMSFs) offer an alternative strategy option for many individuals, families and small business owners to build tax effective wealth and protect assets over time. SMSFs are becoming popular for those who are ready to take control of their own super investments as they give you ultimate control and flexibility to manage your retirement benefits.
It must be noted though, that you will have increased responsibilities as a trustee of the fund. As a SMSF Trustee, you need to keep up to date with all required SMSF regulations and be aware of changes occurring in financial markets.
Integrity Financial Advisory can work with you to understand your personal financial situation and decide whether a SMSF structure is appropriate for you. We will also help you to invest your assets in the most effective way to maximise your retirement benefits, whilst complying with your fund’s investment strategy.
It is generally agreed that there are a number of benefits of an SMSF, but it is important that you also understand that an SMSF may not suit your situation. Outlined below are some of the reasons why a SMSF needs to be considered carefully before establishment:
Benefits:
- Control - trustees make the investment decisions;
- Asset allocation – trustees are in control of asset allocation decisions, as well as issues related to borrowing;
- Tax strategies – trustees have control of tax strategies and other planning options;
- Transparency – your SMSF provides you transparency concerning investments and visibility and control of taxation treatment as a result of investment decisions taken within the fund;
- Cost – expenses of running and administering a SMSF fund are not based on a percentage of the value of the fund, but more on the time needed to prepare reports and address relevant compliance matters;
Disadvantages:
Running and managing a SMSF may not be suitable to everyone. Many of the advantages are also a disadvantage:
- Costs may be relatively high where the asset balance in the fund is insufficient to generate economies of scale due to the fixed costs of running the fund.
- There can be too much flexibility for prudent investing and the fund’s assets must remain within its Investment Strategy.
- Remaining on top of trustee responsibilities is complex and will require an investment of your time.
- Poor personal knowledge of the investment landscape can have serious consequences.
Should you wish to consider establishing a SMSF then we can help with:
- Portfolio creation, providing research and recommendations on investments for the fund.
- Ongoing Portfolio Reporting Services, assisting with ongoing investment management of the fund, including corporate actions and share purchase plans.
- Referrals to professionals who can assist with the accounting and audit requirements of the fund, providing support with the compliance burden on you as Trustee.
- Asset sales and contribution strategies to maximise the benefit you achieve through the fund.
- Pension advice including reference to the legislative requirements helping you meet your obligations as a Trustee and manage the fund effectively on an ongoing basis.
- Superannuation contribution and ongoing strategy support, utilising legislation to build a solid retirement benefit.
Contact us today to discuss how we can work together: (08) 7078 3000 or admin@integrityfa.com.au
