Is a Self-Managed Super Fund right for your future?

July 14, 2017
Vanessa Grieves

Planning for your future and wondering what is a Self- Managed Super Fund and is it the right option for you? We answer some of your questions for you.


Can anyone have a SMSF?

Practically anyone can establish a SMSF but you should always speak to a financial planner before deciding to do so. There are many parts to setting up a SMSF and cost involved as there are 4 entities that are required to be established before you can use your SMSF. There are also ongoing costs involved and requirements you need to meet such as yearly tax returns.


How does it work?

It is very similar to a regular superfund in the sense that your employer will pay your super directly to the bank account of the superfund and you have the option to salary sacrifice as normal. That money is then invested to grow your retirement fund. The key difference is that you have complete control over your investments but you also have responsibility of ensuring your SMSF is meeting the rules & regulations that apply.


Can I do whatever I want with it?

Self-Managed Super Funds are subject to very strict rules and guidelines that you must adhere to. As a member of a SMSF you are also a trustee and are liable to ensure your SMSF is within guidelines at all times. It is crucial to seek advice from professionals before entering a SMSF so you understand exactly what is involved with running a SMSF.


Will it affect my tax?

Your personal tax return will not see any benefit however a SMSF is required to lodge a tax return each year. The money invested into your superfund and the money gained from your investments is very lightly taxed so you get the most money in your pocket come retirement.


What can I invest in?

Deciding where to invest your future nest egg can be difficult and you should always meet with your financial planner to get the best advice on your situation. A SMSF is different when it comes to investing as you can invest in property, assets & term deposits as well as shares. Your investments are ultimately up to you and you can decide to invest everything into shares or invest everything into property but it is always best to have a mixed portfolio to minimise your risk of losing money.


Can I access my money in a SMSF?

The purpose of a SMSF is to save for retirement the same as an industry superfund. A SMSF has its own company, tax file number and bank account so you as an individual cannot access any funds. There is a transition period after a certain age where you can partially access your funds before the retirement age when you receive a full pension but your financial planner will be able to explain this in further detail for you.


We would love to help you start building for future! Contact us today to arrange an obligation free meeting with one of our financial planners to discuss if a SMSF is right for you. 

Posted in: Financial planning

Contact us today.

Additional Comments? * :