How To Have a Secure Future With SMSF

a secure future with smsf a happy male SMSF trustee

A Self-Managed Super Fund (SMSF) is set up solely for the purpose of saving up for retirement. Thus, giving trustees the assurance that they’ll have a secure future with SMSF. 

Unique to other supers, SMSF members are also the trustees or directors of their fund. In addition, members receive contributions and rollovers, make investments and pay out lump sums and pensions through their SMSF. 

Trustees have full control over managing their SMSFs. They are also responsible for deciding how the fund should be run. Moreover, they have a legal obligation to maintain the fund’s compliance with super and tax laws.

However, before they can set up an SMSF, trustees must have a documented investment strategy outlining the fund’s objectives. Furthermore, this investment strategy will serve as a guide to every investment decision the trustees will make to the fund.

Aside from having full control over your investments, SMSF also allows you to invest in less popular or rare assets.

a secure future with smsf a male smsf accountant gesturing that the fund's investment returns has increased

What are the benefits of an SMSF?

Moreover, the retirement benefits an SMSF provides allows members to achieve their future financial needs. Aside from retirement benefits, there are other advantages that members of an SMSF can also enjoy, such as:

Flexible Tax

If the SMSF is compliant with super legislations, the members’ contributions and fund earnings will be taxed at 15%. This is indeed a lower rate compared to other supers. Also, after the age of 60, the benefits you will receive will be tax free. Likewise, when the SMSF is in pension mode, fund earnings also become tax free.

Investment control

Since trustees have control over their fund, they have the freedom to quickly act on an investment opportunity. Further, they can invest in practically all the products available to public funds.

Estate planning

SMSF also gives members access to flexible member death benefits. For example, you have the option to distribute your funds to members of your family or paid as a pension.

Rare assets

Aside from having full control over your investments, SMSF also allows you to invest in less popular or rare assets. For example, you can buy gold or invest in art, antiques, or collectibles which is not possible with other supers.

 

a secure future with smsf a female smsf accountant busy managing her client's fund

Is SMSF right for you?

Indeed, the number of benefits SMSFs provide members are broader and more flexible than other public funds. However, experts warn that SMSF is not for everyone.

Although, SMSFs provide access to a broad range of investments choices, they come with stricter administrative responsibilities and compliance regulations. Moreover, the regulations and policies for SMSFs are constantly evolving. Hence, you must ensure that your knowledge on SMSFs is always up to date. You also have to consider the costs involved with setting up and managing an SMSF.

Hiring an experienced SMSF Administrator to manage your fund can give you several benefits, including peace of mind that your fund is in good hands.

The Australian Taxation Office (ATO) regulates all SMSFs. Further, the ATO ensures that each SMSF complies with financial reporting and taxation obligations. Hence, you have to have some legal expertise to meet the legislative and tax compliance regulations for SMSFs.

Managing an SMSF can also be very time intensive. You have to dedicate a lot of your time managing your SMSF. Otherwise, your investment might suffer. There are also several administrative tasks you must complete, like:

  • lodging a combined fund income tax and regulatory return annually
  • ensuring the SMSF accepts contributions from its members
  • notifying the ATO of changes in the fund’s details
  • maintaining proper and accurate tax and super records

Since you will be responsible for setting your investment strategy, you also need to have knowledge on investment. In addition, you need to have a good understanding of financial markets. Moreover, the ATO has placed a number of restrictions on investments made with SMSFs that you have to comply with.

How can you have a secure future with SMSF?

For you to successfully administer your SMSF yourself, you need to have solid investment experience and a lifestyle with a lot of free time. However, if you don’t have the specialised knowledge and expertise, you can always get an SMSF Administrator to help with your fund.

Hiring an SMSF Administrator to manage and administer your fund for you can give you several benefits, such as:

  • Save you time – delegating the SMSF admin work will give you more time to focus on important matters
  • Less stressful process – removes the burden of meeting your SMSF obligations and keeping track of reporting deadlines
  • Peace of mind – sleep better knowing your fund remains compliant with super guidance and tax laws

DBA Advisory offers a full range of SMSF Administration services, including:

  • SMSF setup, establishment, fund rollover and wind-ups
  • Drafting of minutes and investment strategies
  • Preparation of annual financial statements, and preparation and lodgment of SMSF annual returns and other reports
  • Daily reconciliation of investment records and bank reconciliation
  • Setup of account-based pensions and income stream calculation to pension and contribution caps monitoring, and transfer balance cap monitoring.
  • SMSF compliance and administration services

In addition, our SMSF Administration Division is composed of experienced SMSF accountants. Thus, they can expertly establish and manage your fund based on your needs, and requirements for your future.

Our team is also equipped with the basic technical skills and can run any SMSF software available. Hence, you will receive high quality and timely reports, for you to make the best investment decision and have a secure future with SMSF.

Picture of Maann Sagun, MDC, DMP

Maann Sagun, MDC, DMP

Maann is a Communication Specialist and educator—masking as the Senior Content Writer of DBA. She is also a Digital Marketing Professional and specializes in SEO Audits. Maann has taken both her master’s degree in Development Communication, and bachelor’s degree in Mass Communication from the University of the Philippines.
Picture of Maann Sagun, MDC, DMP

Maann Sagun, MDC, DMP

Maann is a Communication Specialist and educator—masking as the Senior Content Writer of DBA. She is also a Digital Marketing Professional and specializes in SEO Audits. Maann has taken both her master’s degree in Development Communication, and bachelor’s degree in Mass Communication from the University of the Philippines.

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