Self Managed Superannuation Funds
Self managed superannuation (SMSF)have become more popular in recent years. A SMSF is where you are the trustee and, therefore, you are responsible for all investment and compliance decisions. Self managed superannuation funds (SMSFs) give people more control over superannuation for their retirement.
Following are some helpful points if you are thinking about doing it yourself...
Self managed superannuation (SMSF)s
SMSFs is very similar to larger super funds. The most notable difference between these two types of funds is that in general members of an SMSF are the trustees. This means that the SMSF is run by its members for their own benefit.
Setting up a Self Managed Super Fund (SMSF)
When you set up a SMSF you become a trustee of the fund. This means you will have to manage the SMSF in accordance with the law and other rules that apply. The fund is run for the sole purpose of providing a retirement income for its members. Investments made must be completely separate from personal finances. You will need to have an annual audit for the fund and keep records of all contributions.
You and the other SMSF members can make regular contributions from a number of sources to the fund. But there are limits depending on the member's age and contribution caps.
Research basic knowledge about Self Managed Super Funds to give yourself the knowledge to select the right one for you.
Tax
Any income generated by the SMSF is normally taxed at a lower concessional rate of 15%. To be eligible for this rate the fund must be compliant and in line with the relevant rules and regulations. Higher rates apply for contributions made over the caps.
So why are SMSF's becoming popular?
Some of the reasons include:
- The ability to take control and decide on where your superannuation is invested.
- The ability to purchase property within the super fund
- As part of a tax minimization strategy
- Attempts to get a better return on super
Consult a professional
Consult an accountant regularly about your self managed super funds. Here at Plant and associates we specialise in retirement investments. We have excellent knowledge of benefits and tax breaks you may be entitled to. We will also provide information that you and the other trustees might not be aware of. Contact the office to book your free half hour appointment to discuss your options.
Case studies
To further demonstrate the benefits of your Self Managed Super Fund we have complied some scenarios. Please follow to the Case Study page to read more.