SMSF stands for ‘self-managed superannuation fund’.
SMSFs allow Australians to directly invest their superannuation, rather than let ordinary funds manage their money for them.
SMSF’s are subject to the same rules and restrictions as ‘ordinary’ superannuation funds and are regulated by the Australian Taxation Office.
A self-managed superannuation fund can have up to four members, with all members being trustees (or directors if there is a corporate trustee). These members are responsible for meeting compliance obligations.
Return on investment is funneled back into the SMSF, which increases the fund’s worth. These returns may be rental income or capital gains.
Superannuation is a hot topic. There is concern over high fees and low fund performance. A benefit of establishing your own superannuation fund is greater control over your retirement savings, and an SMSF loan can assist you to purchase investment property under your fund. This negates reliance on the share-market and puts you back in control.
If you would want to explore your superannuation or interested in the benefits of an SMSF loan, a few minutes with our loan specialist could help you understand and explore this side of real estate investing. Call or book an appointment with one of our experts today.
An SMSF is a self-managed superannuation fund. SMSFs have to follow the same rules and restrictions as ordinary superannuation funds.
SMSFs allow Australians to directly invest their superannuation, rather than let ordinary funds manage their money for them. SMSFs are regulated by the Australian Taxation Office. They can have up to four members. All members must be trustees (or directors if there is a corporate trustee).
Unlike with ordinary funds, SMSF members are responsible for meeting compliance obligations. The returns on the investment whether that’s rental income or capital gains are funneled back into the super fund increasing your retirement savings.
There is a lot of concern over performance (or lack thereof) of superannuation funds. People are finding they are not in control of their finances because they are relying on the share market. For many clients who come to us, that lack of control doesn’t sit well. At all.
In the main, these are people who have worked hard for their money and who want their money to continue to work for them. These people don’t like not having control over their own money.
A well-established business had a property ownership entity. That entity had borrowed money to buy a commercial property within which they work their business. That premise was now too small and they needed an expanded premise. They had good equity in their existing premises but they need to move up into a higher gear.
The principals of the business have cash sitting in their SMSF. So the super fund was able to buy their new commercial premises. The business itself, entered into a rental contract with their self managed super fund.
The business then sold their existing premise and use the equity from that sale to inject into the expansion of the business.
31.8% of all superannuation funds are with SMSFs now representing the largest slice of the super industry.
For many Australians, SMSFs offer these benefits:
With an SMSF, you can choose where your retirement savings go, with options including listed sh, res, bonds and direct property.
This flexibility gives you the ability to actively manage your investments. With a hands-on approach, you can quickly adjust your portfolios as markets change.
Generally SMSF members pay lower fees and enjoy better performance than all other super funds.
Depending on your individual situation, the advantages of an SMSF may include:
• greater flexibility in investment choices and asset selection
• control over your total investment portfolio, with the ability to take account of the risk profile of all your assets
• maximum flexibility in establishing and managing pensions, including retirement and term allocated pensions
• greater flexibility for accessing Centrelink benefits such as the age pension
• tailored tax management
• investing indirect property
• the ability to transfer personally owned listed shares, business real property and managed funds directly into your superannuation fund, and
• the ability to own business property
Find our more about our special self managed super fund opportunities and let’s see your income work for you to provide you with the lifestyle you are used to… into the future. If it’s an SMSF you need then Intellichoice is the mortgage broker that will carry you ahead of the rest and help you to secure the best financial future you are looking for. Call us on 1300 55 10 45.