SMSF
A fast growing sector of Superannuation in Australia, that has
risen in popularity in recent years, is Self-Managed Super Fund (SMSF).
Wanting greater
control over your super?
A fast growing sector of Superannuation in Australia, that has risen in popularity in recent years, is Self-Managed Super Fund (SMSF).
Some investors choose this option for the control it brings over their investments, others for the ability to invest in direct property; or simply because it can prove to be cost-effective.
At Rocket Wealth Management, we take on the greater responsibilities and ongoing compliance liabilities related to maintaining a SMSF, and help you to acquire high levels of control over your super investments. We’ve compiled some FAQ to help you better understand SMSF and how we can help.
What are the benefits?
The benefits of SMSFs include:
- Control. Greater control over your super, as you make the key decisions including where you invest your money.
- Flexibility and choice. You construct your fund’s investment strategy and enjoy more investment choice. The choice of investments in SMSFs is far greater than what other super arrangements can offer. You can invest in property, direct shares, cash, term deposits and more.
- Costs. You are in control of what services you require and how much you pay for them.
- Tax advantages. There are potential tax savings in SMSFs depending on your personal circumstances and investment strategy.
- Combining Supers. Pool your super with family or other members of the fund, for potential cost savings.
- Borrowing. The potential to borrow to buy a property within your super fund.
- Protecting Income and Assets. Insurance can be included in your SMSF to protect your income and assets, for example life insurance, total and permanent disability (TPD) and income protection.
- Estate Planning. Planning for when you’re not around, by specifying who you want to leave your money to.
What type of
investments can I have?
Common types of investments in SMSFs are:
- Shares and other listed securities including exchange traded funds (ETFs).
- Separately managed accounts – where a share portfolio is constructed and managed by a professional investment manager based on your needs.
- Managed funds – covering most asset classes including Australian and international shares, property, alternative assets, fixed interest and cash.
- Term deposits.
- Direct property – including business, residential, commercial and retail property.
- Other assets such as derivatives, unlisted shares and collectables (for example artworks).
Responsibilities as a trustee
SMSFs give you full involvement in your fund’s operation and the opportunity to make decisions around how your super is managed. However, as an SMSF trustee, you’re also responsible for running the fund in accordance with your fund’s trust deed, as well as super, taxation and corporations law and other general rules such as trust law.
At Rocket Wealth Management, we are able to assist you in staying on top of your fund’s ongoing compliance requirements including tasks such as fund reporting, record maintenance and monitoring, meeting minutes, statutory obligations, tax, audit and actuarial reporting.
How can we help?
There’s a lot to consider before you decide to set up an SMSF. This includes, among other things, your super balance, the number of members joining the fund and their ages, how much time you have to spend on your SMSF, your retirement goals, investment preferences and your risk profile.
We are here to help with all of that… You generally need to have a reasonable amount of super, or be looking to build up your super quite quickly, to justify the costs of an SMSF.
Everyone has a different view of ‘how much’ money is enough to start a SMSF, but as a guide the ATO’s suggests a minimum of $200,000 (that is, if the total balance of all members in the fund equates to $200,000 or more).
At Rocket Wealth Management we make you aware of, and help you to understand, the responsibilities and obligations of being a trustee and we support you in the management of your investment decisions and duties.
To get to the bottom of SMSF and what it means in relation to your financial goals, please contact us to decide if an SMSF is right for you