Is a Self Managed Super Fund (SMSF) right for you?
Already have a SMSF, but want to make it work harder for you?
Over 900,000 Australians run their own SMSF. But the news media is in a frenzy at the moment about SMSF’s and property investments.
We understand that SMSF’s don’t suit everyone, so it’s important you get the right information to decide for yourself.
To assist you to make a correctly informed choice, here are the FACTS:
Why do people set up their own SMSF?
● To be able to make their own decisions about where their super is invested.
● To invest in your own chosen property (business premises "commercial" property or residential property).
Is it expensive to set up a SMSF?
No, it isn’t.
You need a SMSF Trust Deed (the document that contains all of the rules for running your super fund) and we recommend you incorporate a Company to be the Trustee (the decision maker) for the SMSF. Our price for this is $3,000 plus GST, which includes preparation of all required documents, and everything legally required for a SMSF.
For example, if you have $200,000 in super, then the setup costs are 1.5% of your super balance – very low for setting up your financial future!
What are the ongoing running costs of a SMSF?
The ongoing costs start from as little as $250 + GST per month for the administration of your SMSF (includes tax returns, annual financial statements, minutes of Trustee’s meetings) plus $500 + GST for the annual audit of your SMSF.
How much super do I need to set up a SMSF?
Some new media stories suggest you need at least $200,000 (or even higher) to make it cost effective to have a SMSF.
A SMSF is your family wealth creation vehicle. Even if you have as little as $100,000 in super right now, it may make sense to establish a SMSF and then set up life insurance (owned by the SMSF) on SMSF members while they are still fit and healthy.
Also, in many situations, using a SMSF can give you much better estate planning options.
As an example, if you have $100,000 in super and purchase a property (using a borrowing arrangement) valued at $400,000, then you would have a SMSF with $400,000 in gross assets. Assuming a capital growth rate of 5%, you would generally expect the larger amount of $400,000 growing would provide a better outcome than the smaller amount of $100,000 growing.
This is why many people consider a borrowing arrangement for a SMSF.
What investments can I make in a SMSF?
Typical investments include shares, cash, term deposits, and property. There are specific rules about what you can invest in, so it’s important you seek our advice before you make any decisions.
The next step may be a 30 minute education session with your family. We can clearly explain the benefits of a SMSF and whether or not a SMSF is the right thing for you.
The sooner you get started with the right advice, the sooner you will grow your assets to have a better financial future!
A self managed superannuation fund (SMSF) is a popular option for investors seeking flexibility and greater control of their superannuation.
There are many advantages of using a SMSF, and there are also many obligations that you need to be aware of.
We can assist you with understanding these obligations and guide you through the whole process to make it easy for you.
Ben Walker of Inspire SMSFS Pty Ltd (1243433) is an authorised representative of Finance Wise Global Securities Pty Ltd ABN 60 146 708 045. Finance Wise Global Securities Pty Ltd holds an Australian Financial Services License (No. 397877).