Many of our clients set up a Self Managed Superannuation Fund (SMSF) as part of their asset protection, wealth creation and estate planning strategy.
But that's what we specialise in… Helping our clients grow, protect and pass on their wealth.
While there are many changes happening in the superannuation space at present, some things have stayed the same, including the fact that there are still multiple benefits to running your own super fund.
In fact, more and more Australians are opting to take control of their superannuation and setting up self-managed super funds (SMSFs) but before embarking on an SMSF get specific advice to ensure it is right for you.
Some of the ways you may benefit from setting up your own SMSF include:
- A SMSF allows a trustee to consolidate the super assets of up to four members into one larger pool of funds, which increases investment opportunities.
- SMSFs can provide flexibility with more investment options. Trustees can invest directly in shares, high-yielding cash accounts, term deposits, income investments, direct property, unlisted assets, international markets, collectables and more.
- Tax effectiveness: Like all super funds, SMSFs benefit from concessional tax rates. In the accumulation phase, tax on investment income is capped at 15 per cent; in the pension phase, there is no tax payable, not even Capital Gains Tax. Carefully considered tax strategies can help trustees grow their super savings and reduce tax payments as they transition to retirement.
- SMSFs allow greater flexibility for multiple members to run a mixture of accumulation and pension accounts. Trustees can adjust their investment mix as it suits them, allowing for a fast response to changes in market conditions, super rules or personal circumstances.
- The cost of administration could be reduced using an SMSF. While SMSF trustees must lodge an annual tax return and audit, and pay ATO fees, these costs are based on the time to prepare and not based on a percentage of your super balance. This means the more an SMSF grows, the more cost-effective it becomes.
- Increased transparency and control. You’re in control of your SMSF’s meaning you can chose where and how you invest and you will have a better understanding where your money is invested, with complete visibility over performance and tax treatment.
- You can increase the size of your nest egg through leverage. You can purchase residential property with debt.
- You may be able to influence the valuation of properties in your fund through cosmetic renovations and improvements using cash within the SMSF.
- SMSFs can borrow to purchase your business premises. It’s important to understand that a SMSF member can’t live in a residential property owned by their SMSF.
- Estate planning: Having a SMSF provides the flexibility to plan who receives the member’s death benefits, when they receive it and how they receive it, such as a pension or lump sum.
It’s no secret, however, that the superannuation landscape can be complex.
That’s why it is critical to receive licensed professional guidance before establishing your own super fund as well as during its duration.
So if you’re wondering whether a SMSF is the right investment vehicle for you, please chat with us at Metropole Wealth Advisory so we can help you understand all of the benefits mentioned above, as well as many more.
Want to know if setting up a SMSF is right for you? Call Metropole Wealth Advisory now on 1300 20 30 30 to discover how we can help you – now and in the future.
Alternatively, submit your enquiry here and we will contact you.
Metropole Wealth Advisory Pty Ltd provides financial planning advice including Superannuation through a referral agreement with Metropole Financial Planning Pty Ltd a Corporate Authorised Representative of Infocus Securities Australia Pty ltd (ABN 47097797049) AFSL number 236523.