SELF-MANAGED SUPER FUND
A Self-Managed Super Fund (SMSF)
A Self-Managed Super Fund (SMSF), is a small superannuation fund established under super law that gives you control over how your assets are invested and structured. Similar to other super funds, the purpose of a superannuation fund is to provide for you in retirement.
SMSF key facts:
- There are fewer than Seven members.
- Each member is a trustee.
- No member is an employee or member of another fund unless they are related.
- No trustee or director of the corporate trust can be paid for being a trustee.
At Anchor Wealth, we aim to help you grasp how a Self-Managed Superannuation Fund (SMSF) can make your retirement goals achievable. Together, we can ensure that your SMSF continues to fulfil your objectives. We also stay updated on shifts in legislation and compliance for SMSFs, enabling us to adapt and modify as necessary. This ensures that your SMSF consistently works to achieve your financial goals while remaining compliant with regulations.
HOW SMSF’s WORK
As a trustee within a Self-Managed Superannuation Fund (SMSF), you are responsible for actively participating in the fund’s operational affairs. The SMSF, in its capacity, maintains a dedicated bank account through which both income and expenses transact. This encompasses a spectrum of financial activities, including accounting costs and returns generated from investments.
Under the purview of superannuation law, you possess the authority to formulate and execute an investment strategy tailored to the SMSF’s objectives. This strategy effectively guides the allocation of funds to various investment avenues. Collaboratively with fellow member trustees, decisions are made on reinvesting the generated income, aligning with the predefined investment strategy articulated in the trust deed.
The funds held within the SMSF’s bank account play a dual role. They serve to cover the fund’s expenditures, such as taxes and insurance premiums, drawing from the pool of resources available. Furthermore, in cases where the fund serves retirees, pension payments can be administered, ensuring the financial well-being of the retired beneficiaries.
In essence, the role of a trustee within an SMSF entails meticulous adherence to regulatory frameworks, strategic investment planning, prudent financial management, and a commitment to meeting the fund’s obligations. This stewardship encompasses both the optimisation of returns and the safeguarding of financial obligations for the collective benefit of the fund’s members.
KEY BENEFITS OF A SELF-MANAGED SUPERANNUATION FUND (SMSF):
CONTROL:
As a member and trustee, you wield authoritative control over the fund’s investment decisions. This empowerment ensures that your investment portfolio attains security and the desired level of flexibility, aligning precisely with your preferences and requirements.
INVESTMENT CHOICE:
A Self-Managed Superannuation Fund (SMSF) operates within greater parameters, affording Australian individuals the opportunity to invest directly in a diverse array of assets.
These encompass cash holdings, securities, real estate properties, managed funds, equity warrants, unit trusts, and derivative instruments and collectables.
TAX ADVANTAGES:
A Self-Managed Superannuation Fund (SMSF) presents notable tax privileges:
Pre-tax contributions can be made through salary sacrifice, and under certain conditions, contributions are eligible for tax deductions.
Earnings and capital appreciation are governed by the country’s most favourable tax rate applicable to any organisational framework.
Retirement benefits, whether received as a pension or lump sum after age 60, generally remain exempt from taxation.
5 CRITICAL ASPECTS OF YOUR SMSF TO GET RIGHT
This Report downloadable at no cost provides 5 critical aspects of an SMSF every trustee is required to be aware of and get absolutely right, Get what others have paid $1000’s to receive, at no cost in this report.
SELF - MANAGED SUPER FUND
IS A SMSF RIGHT FOR YOU?
SELF - MANAGED SUPER FUND
IS A SMSF RIGHT FOR YOU?
Income in Retirement
An SMSF provides you with the most flexible options for taking benefits in retirement, either as a pension or income stream.
Insurance
You, as a member of an SMSF, can obtain total and permanent disability insurance, income protection, and life insurance through your SMSF. The premium is paid as a tax-deductible expense by the super fund.
Cost-Effective
An SMSF can be an extremely cost-effective structure. Most expenses for an SMSF are fixed, while retail and industry funds charge fees as a percentage of funds under management. With an SMSF, you can consolidate up to Six of your family’s, relatives, and friends super accounts within a single fund. Your family of Six members is charged a single fixed fee, rather than each member paying separate fees.