Self-managed super funds: Benefits and risks of going solo

Going back few years, more young Australian’s have a business lead the charge as it pertains to taking control over their self-managed superannuation with figures from the Australian Taxation Office exposing that the median years of users of newly founded self-managed super money reduced to 48 years, in comparison to 59 years for all those SMSF members.

577,000 self-managed super funds are positioning $622 billion in assets. A lot more than 1.1 million Australians have finally turned from retail or industry money with another $1.sept 2016 7 billion of finance outflow to self-managed superannuation money for the 1 / 4 concluding.

There is exquisite news for both male and feminine SMSF customers, with the common member amounts for females now up to $498,000 as well as for men, $633,000. The female average member balance increased by 24 % over the five-year period, as the male average member balance increased by 17 % over the same period.

So while more Australians are taking control of their self-managed superannuation, here are a few reasons why on the million Australians opting for to obtain their super-fund plus some of the traps to avoid.

Greater than a million Australians have considered self-managed super money:

The control has been you

When you set up an SMSF, you feel a trustee of the finance.  You can determine how much to add and where you can invest that money nevertheless, you do have tasks so make sure you understand these and the guidelines.

Cost efficiency

Organised properly, self-managed superannuation can become more affordable than retaining multiple superannuation money. Make sure you do your information first as typically much larger amounts are certain to get more cost efficiencies.

Tax efficiency

You may minimise duty payable by utilising smart strategies personalised to particular people. Payment of taxes can be deferred and when investing in stocks, surplus imputation credits are refundable to the SMSF completely.

Family Fund

An SMSF is a finance where you could have up to four families with pool cash and investments instead of each having another super fund. Additionally, it is one of the very most adaptable and tax-effective ways for an associate to provide lump amounts or income channels to his / her surviving spouse. Users will have different appetites to associated risk and age groups can vary greatly so make sure your investment strategy attracts this. Click here !


Multiple accounts can be proven for an associate in pension, and income options can be designed specific to their needs.

SMSFs are not for everyone and you ought to seek expert advice to determine whether it’s best for your family and if the benefits outweigh the expenses. The bigger balance typically, the less expensive they may become.  Also, retain in mind that don’t assume all financial adviser is qualified to suggest in the self-managed super fund area so make sure you speak to the person who is.

As the trustee, there are a variety of commitments you must meet even though some administrators go it by itself, you must have enough time and skills to do it as breaching the guidelines often means that you lose duty concessions and become heavily penalised.

Partnering with a specialist financial adviser shall help you determine the best investment technique for your circumstances, monitor the conformity and show you using what is and isn’t allowed under the legislation. Keep in mind; your super money should be maintained appropriately so seek the advice of any self-managed superannuation financial adviser {} who gets the skills and experience in this specialised area to make sure your retirement is an extended one.


Best superannuation fund

Keeping Track Of Superannuation Rules

Superannuation, a particular description for your retirement fund, is a prevalent initiative in most Western Countries. In many countries, it is even mandated by the Government whereby employers are required to pay a percentage amount of an employee’s salary into a separate account, usually a superannuation fund. This amount is saved up until you reach the conditions of release, either because you have reached a certain age, usually 65, or because you have an illness, or you meet another condition of release, as outlined by the Government.

Over a long period of time, the rules and regulations with regards to your superannuation has evolved, and is continuing to evolve, so it is essential to keep track of it. This includes legislation, regulations from the authorities, legal precedents, etc.

For example, one rule that covers superannuation is the Superannuation Guarantee law. Workers between 18 and 70 years of age and earning over $450 per month are covered by the Superannuation Guarantee Law, which means their employer is required to pay an additional 9% of their wages into their superannuation fund. In addition, people can also choose to contribute directly to their superannuation fund. In some cases, the Government will pay an additional amount for every dollar you have contributed to your retirement fund voluntarily. This is called the Government co-contribution scheme. To further boost your super fund, you can also opt for setting aside a certain amount from your salary to contribute to your superannuation fund automatically each month. Check more from

Whether you are with an industry super fund or a self-managed super fund (SMSF), it is a strict rule that you can only access your funds when you meet the conditions of release. This could be meeting your retirement age, which is 65 years old and no less. However, there are special circumstances where the government allows you to access your super fund earlier. An example is when you are sick and the expenses incurred are not paid for by Medicare. Another special circumstance is overseas citizens working in other countries temporarily. In most cases, they can access their superannuation when they leave the country for good.

Best superannuation fundDepending on what kind of superannuation fund you choose, there are certain rules of how you can invest your money. You can choose the type of superannuation funds that best suits your circumstances, whether an industry fund, and a self-managed super fund (SMSF) or another type of fund. The most common ones are the Public Sector Employee Funds (for public employees), Employer Stand-alone Funds (created by employers for their employees), and the Self-Managed Super Funds (you can manage your own funds with strict regulations from the government). Learn more here!

If you have been keeping up with Australian Superannuation Rules, you will notice that there have been changes over the years. However, all changes are aimed to improve how people manage their superannuation and benefit from it.

Having a professional explain the details on how you can manage your funds is always a good choice. You can seek independent expert advice from lawyers, financial planners, superannuation accountants, independent SMSF auditors or any other industry specialist.…

SMSF investment

A Brief Guide to SMSF Investment Strategy for Beginners

SMSF or Self-Managed Super Funds are one of the best options when anyone wants to plan their future after retirement. This is mainly because you can have full control and flexibility over your SMSF and use it to invest your monies wisely. In fact, the very basic rule associated with SMSFs is that the trustees must decide and implement an investment strategy. It is basically a detailed plan of the finances that is put together by the trustees of the fund. More or less, all strategies are a set of rules, which are the driving force behind various investments to be done in the future by the trustees.

How to prepare an SMSF investment strategy?

Any investment strategy is set in place to achieve most or all of your SMSFs investment objectives. Speaking of investment objectives, they can be pre-decided and set by the trustees. They can do this by going through the profile of each fund member in detail. They can also analyze various assets and risk tolerance of the members to achieve the objective.

Once an investment objective is in place, the trustees can move towards preparing an investment strategy by using their knowledge. This is the reason why it is mandatory for all trustees of the fund to have a detailed knowhow of financial terms, such as SMSF borrowing or SMSF auditors to take an informed decision that benefit each of the fund members.

Now, let us take a look at some of the nitty gritty associated with SMSF setup.

Although there are numerous investment options to choose from, three of the most popular ones are direct shares, property investments and cash. Apart from these, you can also invest in collectible, managed investment schemes, listed and unlisted trusts among others.

An investment strategy takes into consideration the present financial needs as well as the future financial needs of each fund members. Moreover, it is planned out only after a detailed analysis of each of the members risk preferences. Read the news from

→ It is the trustees, who have to take the decisions regarding investing the fund assets and document and monitor the performance on a regular basis. If required, they may even update the investment strategy for the people.

SMSF investment→ Sometimes, it is essential to update the SMSF investment strategy as and when there is change in risk preferences or the financial expectations of the members, the introduction of a new member, death of a member or deteriorating health of a member among other reasons.

There are also certain investments that are prohibited. To understand this, the very first thing that the trustees should ensure is that they must comply with the latest SMSF laws. Some examples of prohibited investments are as follows:

→ The SMSF should not make loans to any fund members or their relatives

→ Any investment made should not breach any rules

→ There are restrictions on acquiring assets from related parties, which much be observed

So, this was SMSF investment strategy is a nutshell. Post your comments about the same and feel free to share your tips as well.…

Australian Taxation Office

5 Things You Should Know Before Setting Up Your SMSF

With lacking returns last year from most super funds, people are looking to put their money elsewhere, mainly to self-managed super funds (SMSF). However, before you go transferring all of your retirement funds into a SMSF because of a bad superannuation return statement, there are many things to consider.

1. Will an SMSF really benefit your returns? Many people rant and rave about the fees superannuation funds charge, but, the truth is, if you don’t have the time, focus or knowledge to manage your own super fund, an SMSF may not be for you. Alternatively, if you do have all of these things, then you could be looking at far higher yearly returns on your retirement fund.

2. What is your investment strategy? When you open a SMSF you effectively become your own fund manager. For the technical and administrative component (which is about 10%), it will often be outsourced to accountants. The part of a self managed super fund that will take up the most time is sourcing and managing places to invest your money. Developing a sound investment strategy will allow you to reap the benefits of a SMSF and ultimately take control of your money. Reviewing your self managed super fund investment strategy should be a regular occurrence to keep up with market trends and changes.

3. Who will be the nominated trustees on your SMSF? Before setting up your account, aside from your own name, you’ll need to understand who else will be trustees of your self-managed super fund. You can have up to four names on the account, but they cannot be your employees (unless they’re related). Alternatively, you can nominate a company as the trustee so long as the company directors and fund members are one and the same. However, you still must have only four names on the fund and they cannot be employed by you.get more details from

4. Do you understand your trustee obligations? The Australian Taxation Office has made many attempts over the last few years to help instruct trustees on what their roles and responsibilities are in the management of a SMSF through various publications. If you receive any communications from the tax office, be sure to thoroughly read everything. If you have any questions call the ATO or your accountant.

Australian Taxation Office5. Is your deed current and correct? A deed is the bible by which you’ll run your self-managed super fund, so if the deed is unclear as to what you should do in certain situations or isn’t up to date with legislation, then it is not a good guide. For instance, some people have misunderstood that the blanket statement in most deeds which says “if the deed is inconsistent with the legislation, then the legislation will prevail”, will cover any future changes in the law. This is actually not true.

With lacking returns last year from most super funds, people are looking to put their money elsewhere, mainly to self-managed super funds (SMSF). Before you go transferring all of your retirement fund to a SMSF, there are many things to consider.…