Our guide to SMSF (Self Managed Super Funds)

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1 Our guide to SMSF (Self Managed Super Funds)

2 The what, how and why of SMSF Wealth planning for retirement is more important than ever. Securing and growing the proverbial retirement nest egg can be achieved in a number of ways these days. Flexibility and investment diversification could be what you require. The ability to tailor your investments to your own needs, and perhaps include property in your superannuation portfolio may be your goal. Are you actively planning your retirement and interested in investment strategies? Are you keen to take a more active role in how your super is invested? A self managed super fund may be for you. Is an SMSF right for you? Do you have a combined $150k to invest (you and up to 3 others)? Do you want to take charge of your super? Do you want more investment options? Do you want greater flexibility and visibility? If you answered yes to any of the above, a self managed super fund may be for you. What is an SMSF? A tale of trusts, compliance and taking charge. A self managed super fund is a way of taking control of your super yourself, rather than through a fund manager. It s a private super fund run jointly by its individual members, created as a trusteeship that yields benefits to its members upon retirement, much as a traditional super fund would. SMSF trusts can have up to four members (often husbands, wives or other family members) and like all super funds, their purpose is to help you and other fund members save for retirement. The main benefit of an SMSF is that rather than being part of a fund that invests for the collective needs of its members, you run your own show and tailor your investment strategy to your own needs. There are strict compliance and reporting requirements with an SMSF, as it s governed by Australia s complex super laws. Those laws affect the contributions your fund can accept, the types of investments you can make, the paperwork you need to maintain and the way you can access your money. Each fund also has a trust deed that is a legal document outlining the fund s individual s rules, objectives and details, such as whether benefits can be paid as a lump sum or income stream.

3 How does an SMSF work? Trustee structure Annual tax return and audit Like all super funds, an SMSF is all about saving for, and providing, financial benefits to members in retirement. As a trust, an SMSF needs a trustee. There are two structure options: There are many legislative, reporting and administrative obligations to stay on top of, with penalties for non-compliance. As well as recording your transactions, every year your fund needs to lodge a tax return and an approved auditor needs to conduct an audit of your investment statements. Using a professional service such as Financial Pulse for your administrative needs offers re-assurance, accuracy and peace of mind. Company trustee: You can appoint a company as trustee, with one or more fund members acting as company directors. This can allow for simpler recording and registering of assets, and provide administration efficiencies. Individual trustee: Here, each fund member will be a trustee, and vice versa. Each fund must have a minimum of two trustees. Fund bank account As well as a trust deed, an SMSF has its own Tax File Number (TFN), Australian Business Number (ABN) and transactional bank account. Each member makes superannuation contributions to that account. Then the trustees invest that, in the name of the fund, following the fund s agreed investment strategy. Investing in property through an SMSF If you re interested in establishing an SMSF, you can invest in a range of things, including property. With an SMSF, you can invest in all types of property, including residential property, commercial property, industrial property and even a farm (under certain circumstances). Using a self managed super fund to buy property is becoming increasingly popular, but you have to ensure it supports your overall investment strategy.

4 The Financial Pulse Difference We ll help you take charge of your super today. We let you focus on your investments by taking the hassle out of all your administrative and regulatory needs. Why work with Financial Pulse? Free Consultation Financial Pulse offers a FREE consultation to discuss your eligibility for an SMSF, and to see whether it s right for you. Establishing Your SMSF We help you establish your SMSF, create a trust deed and other compliance requirements such as TFN, ABN and bank account. Investment Recommendations We provide investment recommendations based on your members needs. Ongoing support We ensure all regulatory documentation is up to date so your SMSF is fully compliant within Australia s complex super laws. We bring specialised expertise to the table, that s both impartial and safe. We stay on the pulse of the latest investment opportunities and compliance requirements. We offer competitive fees and more innovative solutions than a traditional accountant, and have a nimble, proactive approach to helping you grow your super. We have access to the latest research, resources, solutions and technologies, we offer a full administrative service that helps to navigate the reporting and legislative obligations with tax and compliance you face when running your own SMSF. If you d like to know more, sign up for your FREE consultation today or us at info@financialpulse.com.au

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