Self-Managed Superannuation Funds (SMSF)are becoming increasingly popular as a superannuation option for those wishing to control the direction of their superannuation, and ultimately, their retirement.
What is a Self-Managed Superannuation Fund?
Every worker in Australia has a superannuation fund that their employer contributes to by law. A SMSF is a legal tax structure that operates under similar rules and restrictions as ordinary super funds but is run by the individual, not the superannuation provider. Therefore a SMSF gives control of investing to the individual.
Why choose SMSF?
Many people who choose to start a SMSF because they were disappointed with the results of their traditional superannuation fund. In a SMSF you have great control of your assets and investment decisions, which may allow you to better manager the tax position of the SMSF. SMSF Benefits also include the flexibility of borrowing within your fund for investment purposes. Some small business owners may hold their business premises within their SMSF for variety of reasons including asset-protection, succession planning and security of tenancy. Another benefit of SMSF is the ability to pool your resources with up to three other members. This increased pool may allow you to access investment opportunities that may not be available otherwise to your SMSF.
SMSFs allow a wider choice of investment options including:
Property: An SMSF can invest in residential or commercial property. A SMSF also allows for borrowing to invest to occur and using their balance to complete renovations.
Small Business: small business owners can use their SMSF topurchase commercial premises for their business to operate from.
Is SMSF right for you?
A SMSF is not for everyone. Set up costs and annual running expenses can be high, while a large balance of super (usually over $200,000) can make the fund efficient and cost-effective. There are a lot of legal and financial implications that must be acknowledged.
If you plan on operating your own SMSF you must: • Carry out the role of trustee or director • Set and follow an investment strategy • Keep comprehensive records and arrange an annual audit by an approved SMSF auditor TSA Financial can assist with referring you to trusted professionals who can advise whether SMSF is an effective strategy based on your personal financial situation.
SMSF LOAN
√ Borrow up to 80% of residential property √ Borrow up to 75% for a commercial property √ Competitive investment rates available √ Purchase and refinances are acceptable
Request one of the consultants to get you a free assessment and find out if you qualify within 24 hours.
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