Super and retirement > Self Managed Super Funds
Self Managed Super Funds
Get the flexibility of managing your own superannuation in a self managed super fund
What is a Self-Managed Super Fund?
A Self-Managed Super Fund (SMSF) is a private superannuation fund that you manage yourself, distinct from traditional retail or industry super funds. An SMSF offers you the flexibility to tailor your superannuation investments according to specific personal and financial objectives. Unlike public super funds, where your investments are pooled with other members’ contributions and controlled by fund managers, an SMSF gives each member of the fund (typically limited to four) a trustee role, providing significant control over the fund’s investment decisions. This arrangement is particularly attractive to those who wish to have direct oversight of their retirement savings, invest in wider and sometimes non-traditional asset classes, and implement specific tax strategies.
How does a Self-Managed Super Fund work?
Operating an SMSF involves creating a trust structure where members are typically trustees and are responsible for decisions about investments and management. Here’s how it generally works:
- Legal framework: An SMSF is set up under a trust structure, meaning it requires a trust deed that outlines the governance, legal obligations, and operational framework of the fund.
- Compliance and responsibilities: Trustees are required to adhere to strict regulatory requirements set by the Australian Taxation Office (ATO), including preparing and submitting annual returns, maintaining records, and ensuring the fund complies with the laws.
- Investment control: Trustees have the autonomy to make investment decisions, which could range from stocks and bonds to real estate or even cryptocurrencies, depending on the fund’s trust deed and investment strategy.
- Financial benefits: The primary purpose of an SMSF is to provide financial benefits to its members upon their retirement. The members/trustees manage the fund’s investments with the goal of achieving substantial returns over the long term.
Benefits of a Self-Managed Super
Control over investments
One of the most significant benefits of an SMSF is the level of control members have over their investment choices, allowing for a personalised investment strategy that aligns with their risk tolerance, investment preferences, and retirement goals.
Tax strategies
SMSFs benefit from the concessional tax rate of 15% on income earned by the fund, similar to other super funds. However, SMSFs often have more flexibility to employ advanced tax strategies, such as timing the sale of assets to minimise capital gains tax.
Cost effectiveness
For larger balances, an SMSF can be more cost-effective compared to traditional super funds because the fees might be lower as a percentage of fund assets.
Estate planning
SMSFs offer greater flexibility in estate planning. Members can tailor their estate planning needs more precisely through specific and binding death benefit nominations that do not necessarily change with personal circumstances, as they might in retail or industry funds.
Meet our Self-Managed Super Fund Advisors
With over 25 years of experience each, Tim and Paul bring a wealth of knowledge and a personal touch to Financial Planning at APS. They provide expert advice and comprehensive support for all aspects of SMSF management, from initial setup and compliance to ongoing administration and strategic investment planning. We understand the complexities involved in managing an SMSF and offer tailored solutions to ensure your fund is positioned for success. Together, Tim and Paul take the time to listen, understand, and tailor strategies that give you clarity and confidence at every stage.
“APS Group completes my SMSF accounting after taking over from my first accountant who retired. APS’ communication is clear and timely.
They are very thorough and exacting in this complicated yet very important area. Highly recommended.”
– SMSF client
Is a SMSF right for you?
Self-Managed Super Funds offer a unique opportunity to directly control your retirement savings and can provide significant financial benefits if managed correctly. However, they come with considerable responsibility and legal obligations. If you’re looking for guidance or thinking about whether an SMSF is right for you, we can provide the expertise and support you need. Contact us today to learn more about our SMSF services and how we can help you secure your financial future.
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