Have you been thinking about taking a more active role in your investments and retirement planning? If so, you may want to consider if a self-managed superannuation fund (SMSF) is right for you. Just like your current superannuation fund, an SMSF is a fund set up to help you save and invest for a comfortable retirement.
An SMSF requires a more hands-on approach from you – which is why we call it “self-managed”. Members of an SMSF are typically its trustees; what this means is that the fund’s members are managing the fund’s activities for their benefit. It also means that the members are responsible for compliance with all relevant and applicable legal regulations, including superannuation and tax laws.
Although this may sound complicated, it doesn’t need to be; in fact, an SMSF can provide a wide range of benefits! With the ATO reporting a total of 1.1 million SMSF members, holding $697 billion in assets as at June 2017, it’s no surprise more and more Australians are turning to an SMSF to manage their retirement investments.
So, what are the benefits? There are two clear categories your benefits fall into: administrative, and financial.
From an administrative point of view, an SMSF offers you a greater degree of ownership and flexibility over the fund’s operations. You, alongside any other trustees of the fund, have ownership of all decisions made. You also hold total responsibility for compliance with superannuation laws. As a trustee of an SMSF, you also have the option to bring in a professional (such as a licensed adviser, or administrator) to ensure you’re meeting all operational and legal requirements for the fund.
From the financial side of this, an SMSF provides a wide range of potential investments, opening up the opportunity to invest in categories not covered by larger, industry or retail-run funds. These categories cover everything from artwork to direct property. Each unique category is, of course, subject to specific rules. You’ll also find that an SMSF can realise cost savings through fees, offer tax benefits – especially around capital gains tax, and also hold insurance on the SMSF members. Holding insurance in this way can prove advantageous from a tax perspective.
While an SMSF does present particular challenges and responsibilities, it can be an effective, financially efficient, flexible way to manage your retirement. A financial adviser can assist with your questions to ensure the initial set-up is done correctly, and you’re meeting all legal obligations from day one with no surprises waiting for you further on.
How can Halkin Business Partners help?
Halkin Business Partners work with third party financial planners who can advise our clients on the advice necessary around a SMSF and any other wealth strategies. Our tax consultants will assist with the compliance, lodgments and management of the SMSF.
Speak to our specialists to see how Halkin Business Partners can help you with you with your wealth Management.