Despite recent proposed changes announced by the Government, your superannuation (super) fund will most likely be the primary vehicle for achieving your retirement goals and if managed properly, it should end up being one of your largest assets – more than enough to support you as you enjoy your retirement. It is also a very attractive investment, primarily due to its high tax effectiveness, which improves your ability to accumulate wealth. Over the last several years, self-managed super funds have risen in popularity as it offers control, a number of tax benefits and flexibility for improved wealth creation compared to standard member retail super funds and member industry super funds.
According to latest estimates, nearly 600,000 SMSFs are now in operation controlling about a third (32%) of the total $2 trillion invested via superannuation funds. Those Australians taking an active interest in their superannuation are discovering the financial benefits offered by establishing their own superannuation fund. For instance, the average balance for SMSFs exceeds $1 million (noting – an SMSF can have up to 4 members, but most common between husband & wife), which is considerably higher than most individual retail / industry super funds that members use to park their 9.5% employer contributions up to their relevant contribution caps. Given that Australians rely on their super to fund their retirement, and many analysts believe that now a super fund balance of $1 million is not nearly enough for a ‘comfortable retirement’ – it’s no wonder that SMSFs are becoming a popular alternative to retail and industry superannuation funds.
There are of course, many more benefits to establishing your own self-managed superannuation fund. But watch out! SMSFs are heavily regulated by the Australian Taxation Office (ATO). There are many rules and obligations that a trustee of an SMSF must aware of and comply with or risk the wrath of the ATO. There are many responsibilities and obligations for every trustee and member that comes with significant consequences if you do not manage and administrate the fund according to legislative and compliance requirements.
Therefore, it’s prudent to get independent financial advice, professional guidance and support from trusted advisers that specialise in superannuation strategies, superannuation management and administrative compliance.
Through your local Chan & Naylor office you can get access to our specialist service centres such as our Wealth Planning and Finance teams who can assist in the delivery you a comprehensive all-in-one SMSF solution, including:
We believe in empowering our clients with not only the tools, but also the information and know-how to help them take control of their superannuation and make informed decisions for their future.
Book a free phone consultation with a senior adviser today, to discuss how you can user your super to grow your family’s wealth and fund a comfortable lifestyle in retirement – or Call our Wealth Planning office direct on 1300 997 734.
eBook & Video: How to use your Super to invest in Property…
…If you have a SMSF you may now be able to borrow money to buy a commercial/residential Property through your fund: How does it work? The benefits of this strategy; Some things you should consider…?
Ken Raiss Talks about how you could maximise your superannuation with various strategies in relation to Control, Pension Stage, Borrowing and Life Insurance
The ability to borrow in superannuation together with the lower tax rates has made it very attractive for many to purchase property in super….we recommend a five stage process when looking at purchasing property in super