Are you suited to a SMSF?
Most superannuation fund members in Australia are aware of the concept of an SMSF, but may not be sure as to whether they are particularly suited, or can handle the extra responsibilities that come with being a trustee of their own fund.
There are no hard and fast rules, but we would probably suggest that an SMSF might be worthwhile for you if the following apply:
- You have existing superannuation fund assets of at least $200,000 (combined balance of the proposed members of the fund), OR the ability to make substantial contributions to the fund at outset, in order to get the balance above $200,000.
- You have a keen interest in building your superannuation fund assets towards your retirement goals.
- You want to have more control over how your investments are placed and managed.
- You want to take advantage of strategic taxation and investment opportunities that are very suited to an SMSF.
- You have a decent superannuation balance and you want to minimise income tax and capital gains tax on the superannuation investment assets.
- You are getting closer to age pension age and you want to maximise the opportunity to gain some Centrelink age pension benefits.
- You want your SMSF fund assets to be completely within your control, for estate planning advantages.
- You have a larger superannuation fund balance and you want to minimise administration and investment management fees.
A desire to have your own SMSF basically comes down to the word – “control”.
Rather than outsourcing your superannuation fund assets to an institutional superannuation fund, where you have no connection or control over decisions made by the trustees or the investment managers, you feel that it is important to have some sense of control over the money that you have got invested inside your super fund and the way it is managed on your behalf, for your benefit and that of your beneficiaries.
Find out more about: