First Financial Services, Financial Planners in Cairns are accredited SMSF specialists.

Having a self-managed super fund (SMSF) can give you greater control over your financial future. Being in the driver’s seat means you make all the investment decisions and can get your super working for you, including accessing unique tax and investment opportunities. But there is also the challenge of managing the administration and compliance of an SMSF. Seeking advice from a Financial Adviser makes it easier for you to run your own self-managed super fund, with help where you need it.

There’s a lot to consider before you decide to set up an SMSF. This includes, among other things, your super balance, the number of members joining the fund and their ages, how much time you have to spend on your SMSF, your retirement goals, investment preferences and your risk profile.

You generally need someone to help you set up your SMSF (such as an adviser and an accountant).

You need to have a reasonable amount of super, or be looking to build up your super quite quickly, to justify the costs of an SMSF. Everyone has a different view of ‘how much’ money is enough to start a SMSF, but as a guide the ATO’s suggests a minimum of $200,000 (that is, if the total balance of all members in the fund equates to $200,000 or more).

As an SMSF trustee, it is important that you are aware of and understand the duties, responsibilities and obligations of being a trustee. You will need to ensure that your fund operates in accordance with all applicable laws. You will also need to be aware of and follow the rules set out in your fund’s trust deed.

You need to be comfortable making investment decisions around when, where and how to invest or consider working with an adviser to help you. In particular, you should seek advice around borrowing if this is of interest to you. Depending on your circumstances, gearing in your super may not be appropriate.

You should consider discussing your situation with an adviser before deciding if an SMSF is right for you.

The benefits of SMSFs include:

  • Flexibility and choice. You construct your fund’s investment strategy and enjoy more investment choice. The choice of investments in SMSFs is far greater than what other super arrangements can offer. You can invest in property, direct shares, cash, term deposits and more.
  • Costs. You are in control of what services you require and how much you pay for them.
    Tax advantages. There are potential tax savings in SMSFs depending on your personal circumstances and investment strategy.
  • Pool your super with family or other members of the fund, for potential cost savings.
    The potential to borrow to buy a property within your super fund.
  • Insurance can be included in your SMSF to protect your income and assets, for example life insurance, total and permanent disability (TPD) and income protection.
  • Planning for when you’re not around, by specifying who you want to leave your money to.

For more information about Self Managed Super Funds SMSF phone First Financial Services on 07 4038 3333, Financial Planners in Cairns .

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