Self-Managed Superannuation Funds (SMSFs) can be an ideal strategy for many individuals; families and small business owners for building tax effective wealth and protecting assets over time. SMSFs are becoming popular for those who are ready to take control of their own super investments as they give you ultimate control and flexibility to manage your retirement benefits.
It must be noted though, that you will have increased responsibilities as a trustee of the fund. As a SMSF Trustee you need to keep up to date with all required regulations and keep up with the fast paced financial markets.
BeWeiszer can work with you to understand your personal financial situation and decide whether a SMSF structure is appropriate for you. We will also make sure your assets are invested in the most effective way to maximise your retirement benefits.
It is generally agreed that there are a number of benefits of an SMSF but it is important that you also understand that an SMSF may not suit your situation, see below for some of the reasons why.
Control - the trustees make the decisions and therefore can determine where their money is invested.
Asset allocation – having control means the trustees play a major role in their fund’s asset allocation decisions plus there are issues related to borrowing that the trustees must be aware of.
Tax strategies – by careful consideration of tax strategies and other planning options you are in the best position to minimise the taxation that applies on your investments.
Transparency – your SMSF provides you with good transparency concerning investment decisions and gives complete visibility over taxation treatment.
Cost – the costs of running and administering the fund are not based on a percentage of the value of the fund but more on the time needed to prepare reports and address relevant compliance matters.
Running and managing a SMSF may not be suitable to everyone. For example, many of the advantages are also a disadvantage. Costs may be relatively high, there can be too much flexibility for prudent investing, remaining on top of trustee responsibilities can be complex and time consuming, and poor personal knowledge of the investment landscape can have serious consequences.
Should you wish to consider establishing a SMSF then we can help with:
Establishing your fund
Annual Compliance Services
Portfolio Administration Services
Superannuation Advisory Services