Is your superannuation working for you?

September 28th, 2009 | Financial Planning News

If you have accumulated a significant superannuation balance or wish to maximise your returns and have greater control over your investments, a Self Managed Super Fund (SMSF) may be the answer.

A SMSF is a vehicle that is used to manage the superannuation portfolio of most commonly, an individual or family.  A SMSF can have up to 4 members.  A SMSF’s purpose is to successfully save for retirement by allowing its members greater investment flexibility, choice and control over their superannuation assets.

The primary advantages of owning a SMSF include:

Flexibility – Investment choice is far greater than all other superannuation funds.  SMSFs, can invest in a wide range of investments, including residential property, commercial property, shares, term deposits and artwork amongst others.

Gearing – Due to recent legislative changes, SMSF’s are now able to borrow to invest. This may result in higher returns within a portfolio by enabling the fund to buy assets they may not have had the funds to previously purchase, such as a property.

Potentially lower fees – Provided the SMSF has a sufficient investment portfolio, there is the potential for lower establishment and administration fees.   Generally speaking, due to the ongoing compliance and administrative costs, a SMSF is only economically viable where the combined superannuation portfolio of all members exceeds $100,000.  It can be lower, especially if you plan on making significant super contributions or if you plan on gearing within your fund.

Some additional issues to consider when considering setting up a SMSF include:

Administration and compliance – The administrative, compliance and reporting requirements for trustees of self managed funds can be time consuming and costly – but that’s where we can help. Quinn Consultants can work with you to ensure your fund remains compliant with all legislation and can help you reduce your administration time.

Legislative risk – The superannuation legislation can be complex and constantly changes.  It is essential that the fund is set up the right way from the start.  If a fund is found not to be a ‘complying fund’ the assets of the fund can be taxed at 45%.   No need for concern, as we are here to help.

Getting you started

Your financial planner will be able to assist you with the following:

–  Free review of your financial position and objectives to see if a SMSF is appropriate for you
–  Cost effectively set up your SMSF
–  Provide investment advice for your SMSF benefits, including finding cost and tax effective investments and helping you with your retirement strategies
–  Provide all ongoing compliance obligations, including preparation of your audited financial statements and tax return

Here at The Quinn Group our experienced team of Financial Planners, Accountants and Lawyers can provide you with the total solution and assist you with all your retirement planning needs. For advice about whether a self managed superannaution fund is right for you and to get the best chance at the lifestyle you want, contact Peter Quinn by submitting an online enquiry or calling us on +61 2 9580 9166 to book an obligation free appointment.

The information in this document does not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness having regard to these factors before acting on it.  It is important that your personal circumstances are taken into account before making any financial decision and it is recommended that you seek assistance from your financial adviser.