A collection of hard earned dollars that business entrepreneurs, retirees and professionals have put away and invested wisely for a comfortable retirement.
THE REASON WHY SMSFs ARE ON-TREND AND POPULAR WITH THE PEOPLE-IN-THE-KNOW IS THE LEVEL OF CONTROL OVER YOUR FINANCIAL FUTURE IT PROVIDES.
Self managed super funds are often shrouded in mystery and made to sound like a big monolith. And while a SMSF does take more management than the standard industry fund, the benefits are clear. Let’s take a walk through the ins and outs of SMSF and see what works for you.
Please note: There’s a little bit of accountancy speak due to the nature of the subject, but we’ve endeavoured wherever possible to keep the true inside jokes and technical terms to an absolute minimum.
IN A NUT SHELL WHAT IS A SELF MANAGED SUPER FUND?
A SMSF (also known as a DIY super fund) is an alternative to industry and retail super funds. A SMSF is quite distinct in that you take over the ownership of how your money is managed and invested. So instead of letting the fund potter along, a SMSF puts you in the driver’s seat and allows you to take action.
A SMSF allows you to have greater control over your retirement funds and tax effective strategies are more accessible within an SMSF then a standard retail super account. Self managed super funds also widen your range of investment options to aid your super’s growth.
SMSF IS ALL ABOUT TAKING BACK CONTROL
It’s your super and you are the one who takes the lion share of the management. While that might sound like a daunting task, the benefits are clear.
By taking control of your super, you – the trustee – will determine the investment strategy of the fund and how it will be managed day-to-day. Working within super law and with the right advice, you can grow your SMSF through investing in property, managed funds or shares. This flexibility and control gives you ample opportunity to boost your super’s potential.
On average a retail superannuation fund will charge a rate of 1.37% on the balance of your super in administration and investment management fees. So if you have $200,000 in a retail fund, your compliance costs are expected to be in the $3K ballpark. This cost will grow as your super grows.
The annual cost to have Orbit Accounting and Tax look after the compliance of your SMSF would cost on average $2 – 3k (for annual accounts, audit, administration fees, associated costs and so on). SMSF compliance costs also stay relatively steady so as your super grows, the fees you pay do not.
While $200K may look like a fair chunk of change, don’t let the minimum balance deter you from investigating SMSF. We’re not only well-versed in SMSF, we can also talk you through a range of strategies to get you to that initial starting point.
In short, come in for a chat. We’re sure we can work with you to explore SMSF as a viable option for your future retirement.
Clearly, the benefit of having a SMSF is that you gain greater control in investing for your retirement. With an SMSF you will be required to be more hands on, to make decisions about investments and have a working investment strategy in play.
As a trustee, you’re also responsible for ensuring your tax obligations are met and your compliance deadlines are kept. Penalties related to SMSF that are not up to ATO standard can be quite harsh, both financially and in some cases, legally.
Superannuation laws are also a big part of the SMSF landscape, and ensuring you’re fully informed and working within the current legal requirements of SMSF is also up to you.
However, a SMSF doesn’t mean you go it alone or can’t draw on advice and assistance in order to make sure all your compliance ducks are in a row and happily quacking.
We offer a free assessment and Q&A service.
Come on in for a chat. We can take a look at your particular super needs and match them against what is required to get the most out of SMSF.
We make your SMSF setup and the setup of supporting structures a breeze.
The hardest part is often the start, which is why we offer a complete setup service and strategic plan for individual and corporate trustee based SMSFs.
We make it our business to be well-versed on your obligations.
You can draw on our expert knowledge any time you need. We stay abreast of changes to law and tax changes and act as a universal translator to pass this information onto you.
SMSF transparency is our middle name.
We provide you with a real time dashboard where you can track your SMSF’s performance and never miss an opportunity to maximise your return. On this dashboard we can check that your fund is compliant at all times. Planning and strategy are all part of the package. We can assist in planning a strategy to build your super and make it as effective as possible.
We untangle compliance and administration red tape.
Forget niggly administration tasks and sending yourself twisty trying to keep up with your SMSF to do list. We can complete the necessary compliance for your superfund, including mandatory annual accounts, tax returns, compulsory audits, member’s minutes and other administration tasks.
Exemplary customer service and sound advice are all part of the package.
Because we take the time to customise each and every approach to SMSF, we’re a popular choice for existing SMSF members.
We can work with you to refine your current strategy. And we can advise on potential opportunities to increase growth without increasing your SMSF workload.
Gregory Dennis (ASIC No. 1247984) is a Limited Authorised Representative of Merit Wealth Pty Ltd ABN 89 125 557 002, Australian Financial Services Licence Number 409361. This information has been prepared without taking into account your objectives, financial situation or needs. Because of this, you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation or needs.