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Bselfmanaged

Reasons why you would establish a SMSF

According to the ATO some of the reasons why people setup a Self-Managed Super Fund include:

  • CONTROL – The members or a company controlled by the members of the Fund acts as the Fund Trustee/s.
  • FLEXIBILITY – The Fund can accept personal and multiple employer contributions. On retirement a member’s account may pay a lump sum or continue administration as an allocated and/or complying pension paying a tax effective income stream without impacting on other members in accumulation phase. Benefits may be paid in specie.
  • INVESTMENT – The Trustee/members implement the investment strategies, usually with the assistance of a specialist adviser.
  • PORTABILITY – The Fund is totally portable; it is not necessary for each member to reside at the same address or even the same State.
  • SECURITY – The Trustee/members control the Fund Bank/CMT account and hold the investment certificates of title.
  • FAMILY FUND – Up to four (4) members can participate.
  • BUSINESS FUND – Business partners may be the Trustees and Members.
  • BANKRUPTCY PROTECTION – A member’s fund assets are usually protected from creditors in the event of bankruptcy.
  • ADMINISTRATION – The Fund establishment and compliance administration is conducted on behalf of the Trustee by Bselfmanaged Superannuation Pty Ltd.
  • FEE SAVINGS – The Self Managed Superannuation Fund fee structure usually delivers substantial savings when compared to traditional funds.

Typical scenarios include:

  • If you are closer to retirement within the next seven to twelve years and are close to having a balance between $200,000 and above
    You are intending to contribute the maximum contributions you can for your age and looking to bolster your retirement funding.
  • If you are a young couple or working professional with an asset balance of more than $120,000 in superannuation and actively contributing
  • You may be around three to four years away from retiring and expect have a balance of more than $400,000 within twelve months of setting it up

You will need to weigh up the above with the fees and costs of running your own super fund as anything below these balances could end up being more expensive for you, however you will also need to consider the opportunity of investing with more flexibility and control.