As a self managed super fund (SMSF) trustee, you decide how your fund is managed, and control where your money is invested. Our clients often report that having greater visibility over their retirement savings has led to a deeper understanding of how their overall wealth is tracking, giving them more confidence in their investment and lifestyle decisions.
An SMSF could offer significant benefits in retirement
There are a number of key benefits to managing your own SMSF:
SMSFs provide a range of investment options. Trustees can potentially access direct shares, high-yielding cash accounts, term deposits, income investments, direct property, unlisted assets, international markets, collectables and more.
Like all super funds, SMSFs benefit from concessional tax rates. In the accumulation phase, tax on investment income is capped at 15 per cent; in the pension phase there is no tax payable, not even capital gains tax. Carefully considered tax strategies can help you grow your super savings and reduce tax payments as you transition to retirement.
SMSFs allow multiple members to run a mixture of accumulation and pension accounts. You’ll be able to adjust your investment mix as it suits you, allowing for a fast response to changes in market conditions, super rules or personal circumstances.
SMSFs offer significant transparencies that allow trustees to align their personal goals with their investment decisions. Whether you’re passionate about property, shares or sustainable and ethical investing, SMSFs provide a platform which allows you to understand where your money is invested, with complete visibility over performance and tax treatment.
SMSF trustees must lodge an annual tax return and audit and pay Australian Tax Office (ATO) fees (these are capped and not based on a percentage of your super balance). The more an SMSF grows, the more cost-effective it becomes, but the total cost of running an SMSF will depend on the related investments and any costs associated with engaging professional support.
Consolidate superannuation assets
An SMSF currently allows a trustee to combine their superannuation assets with up to three other members* such as partners or family members.
Consolidating super accounts immediately creates a larger fund balance, which increases the fund’s assets and investment opportunities – with only one set of fees.
Is an SMSF right for you?
It is important to understand that while there are numerous benefits to establishing an SMSF, there are also many considerations and risks to understand and be aware of when making your decision. These include trustee responsibilities, costs and insurance cover. Learn more about whether an SMSF is right for you.
Find out more
If you’re considering an SMSF, contact us to find out how our SMSF Accounting service may be able to help you.