Self-Managed Super Funds
A Self-Managed Super Fund (SMSF) is a way to take full control of your superannuation and how it is invested. SMSFs are one of the fastest-growing sectors of the Australian super industry, giving you flexibility and control, but also legal and financial responsibilities.
Is an SMSF Right for You?
SMSFs are not suitable for everyone. According to the Association of Superannuation Funds Australia (ASFA), an SMSF may be appropriate if you:
- Are confident with financial and legal matters
- Have sufficient super savings to make setup and ongoing costs worthwhile
- Can cover professional advice, accounting, auditing, and legal costs
- Have time to research and review your investments regularly
- Have life insurance, including income protection and TPD cover
How SMSFs Work
An SMSF is a legal trust structure regulated by the Australian Taxation Office (ATO), designed solely for providing retirement benefits. Features include:
- Up to six members
- A trustee structure (corporate or individual)
- A central bank account for contributions and investments
- A governing Trust Deed
- An investment strategy outlining how assets will be invested
- Binding Death Nominations to direct benefits in the event of death
- Annual tax returns and audits
You Can’t Do It All Yourself
While SMSFs are sometimes called “DIY super” you will need professional support to meet legal obligations. This may include:
- An independent SMSF auditor registered with ASIC
- An actuary in certain circumstances
- Independent valuers for specific assets
- Administrators to help manage day-to-day operations (legal responsibilities remain yours)
- Accountants for financial statements and tax returns
- Financial Advisers for investment and estate planning guidance
What Are The Costs
The costs of setting up and running an SMSF depend on your circumstances, super balance, investment strategy, and how you choose to manage the fund. More complex funds typically incur higher costs.
How We Can Help
Professional Money Management can assist with the investment, retirement and estate planning aspects of your SMSF.
We can help you:
- Understand if an SMSF is right for you
- Develop an investment strategy that aligns with your risk profile and goals
- Review your financial position to identify potential tax efficiencies
- Identify tax-effective ways to pass assets to your loved ones
- Understand strategies related to superannuation contributions
- Review your income and cashflow requirements
- Find ways to grow your retirement income
- With guidance on structuring your SMSF to meet your retirement objectives
- Determine when you can apply for Government benefits and whether you are likely to be eligible
- Review your estate planning
- Determine if you have the correct beneficiary nominations in place
- Understand if your SMSF fits with your overall financial plan
*We provide advice only on investment, retirement planning and estate planning for SMSFs, we do not administer or manage SMSFs directly.
Professional Money Management can help you make the right decisions about your finances. Call us today on (03) 51 433 450.