What is a Self Managed Super Fund?
A Self Managed Super Fund (SMSF) is a fund designed to hold and distribute retirement benefits for its members. These funds are controlled by their members, and may have no more than 4 members.
Why use a SMSF?
SMSF’s currently hold 31.2% of all money invested in super by Australians. The main attraction of SMSF’s are that you have control over where your super money is invested, and they can create additional tax efficiencies and save on administration fees.
Is an SMSF right for you?
It could be if you and/or your spouse have at least $200,000 to transfer into an SMSF, and you think the advantages of such a fund outweigh the disadvantages (as shown below).
Advantages
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You have control over how and where your money is invested
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There can be fee savings if you have more than $200,000 invested
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SMSF’s offer the potential to use tax saving strategies not possible in other types of funds
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SMSF’s can purchase your business real property
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SMSF’s can give you certainty for your estate planning
Disadvantages
- You have to make sure your fund complies within the regulations
- You have to administer the fund
- As a trustee of the fund, you are open to personal litigation if the fund is not run properly
- You are responsible for the fund’s investment strategy
Talk to us today to see how we can help you be better prepared for the future with a self managed super fund.
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