If you want control over where your super money is invested such as investing in property and access to a greater choice of investments compared to managed super funds then setting up and managing your own SMSF is the answer.
Through your own SMSF, you can invest in property (commercial and residential), shares or any other valuable asset. If you have your own business you can purchase business property, such as an office or warehouse, and use the property as your business premises, often providing a substantial tax benefit (of course this will depend on individual circumstances).
Is it for me?
Should you start a self-managed super fund? If you want to take control of your own super, the answer is probably ‘yes’.
Industry and retail super funds promote the idea of a ‘minimum balance’ and while you do need to consider how much super is enough before you take the SMSF plunge, you really don’t need as much as their marketing departments would have you believe.
Technology is evolving rapidly and consequently, administration costs are reducing – you can now run a SMSF usually for a lot less than you would pay in administration fees to a retail fund. A super balance of $100,000 or thereabouts and you’re in the game. Further, if you’re planning substantial contributions in the next few years, the current balance isn’t that important.
If you’re committed, you SMSF can be about taking control of your investing and improving returns. So if you’ve got the commitment and a balance of $100,000 or thereabouts, that’s a good start.
You do however need the right advice. SMSFs can deliver poor outcomes if you choose the wrong advisers and get caught with poor in-house products or make excessively risky investment decisions.
We will provide you with proper advice about whether or not you should go down the SMSF road. If it is the right choice, we (together with our industry alliance partners) will take you through the whole process, from setting up your SMSF, establishing bank accounts, arranging TFNs and ABNs, rolling over your existing Super, and arranging for quality Financial Advice. This advice is ongoing so that you have the best chance of maximising your returns.
*Please note we do not provide financial advice, rather we work with trusted industry professionals in this area.