A SMSF let’s you take control of your super

A self-managed super fund is a type of superannuation funds just like corporate funds, retail funds or industry funds. The overall purpose is also the same, saving for your retirement.

The difference however, is that you are in complete control of the investment choices you make. You are also responsible for compliance with tax and super laws.

A self-managed super funds can have between 1 and 4 members and are therefore suited to individuals, couples and families. They are also ideal for those who like the control and flexibility that comes running their own fund and with making their own investment choices.

Setting up a SMSF

Generally, it is not recommended to establish a SMSF with less than $250k. As it may not be financially viable with the initial setup and ongoing costs.

As a self-managed super fund is an investment the investment strategy will take into account the risk profile of the members. The investment strategy sets out your fund’s investment objectives and specifies the types of investments your fund can make.

Investment options

A SMSF can invest in range of investments such as, shares or units, residential or commercial property, fixed interest and cash.

Some people are quite comfortable with making investment decisions and do not need the assistance of a financial planner. Not feeling the same doesn’t mean a SMSF isn’t for you. Some members prefer a regular review of the investment strategy in consultation with us. As your financial advisor we can organise the purchase and sale of shares and units through a stock broker, advise on strategies and update you on any changes to legislation.

SMSF responsibilities

A SMSF will have its own Tax File Number (TFN) and Australian Business Number (ABN). Each year, you will need to ensure the financial statements are prepared, audited and the tax return is lodged.

Retirement

When a member of a self-managed super fund is approaching or in retirement, we will walk them through the types of pensions they can set up. The SMSF would then be able to pay the member a pension or income stream. If the member is 60 years of age and older, the member will receive a tax free pension. In additional to that, the earnings of the assets supporting the pension will be tax free. So not only is the member receiving a tax free pension but it is possible for the SMSF to pay no tax on income and earnings.

Canny Group and your Self-Managed Super Fund

Whether you are considering or already have an SMSF, our team at Canny Advisory offer on-going service packages to all SMSF clients. With Advisory and Accounting in one place, we can assist your with your administrative accounting, tax and financial planning requirements. We also assist with tax planning, estate planning and retirement planning.