Are You Ready for a Self-managed Superannuation Fund?

There’s nothing simple about planning for your retirement. Economic uncertainty, a new government, rising interest rates, fluctuating property, the pandemic; so many factors are currently outside our control.

With the correct guidance and advice, investing through a self-managed superannuation fund (SMSF), can be an effective way to grow your wealth for the future.

An SMSF is a personal superannuation fund that is set up to provide benefits for its members when they retire.

There are no requirements regarding minimum balances to set up an SMSF, however, to make it viable, you should be ready to invest at least $500,000 from the get-go.

Once you have set up a SMSF, you can roll any existing superannuation benefits into it and begin making personal contributions.

Important to know is that the amount you contribute to your SMSF in any one year will be capped, and if you contribute more than your capped amount, you’re likely to pay additional tax. Additionally, all members of the fund are responsible for all decisions made and must comply with the superannuation and taxation law.

What can you do with your SMSF?

You can pay some insurances through your SMSF, and you can invest in diverse assets, including commercial and residential property, term deposits, shares (in Australia and overseas), managed funds, bonds and even cryptocurrency. Any income your SMSF earns will be taxed at a lower rate of 15% down to 0% upon your retirement.

What’s the downside?

SMSFs can be harder work to maintain than a regular commercial superannuation fund. This is because of compliance obligations, including the need to have your fund audited every year, and to have financial statements, and tax returns professionally prepared.

Ready to Get Started?

Setting up and running an SMSF is not to be sneezed at. Before you go ahead and set up your own, make sure you obtain professional financial advice from a licenced financial adviser. Getting the structure, compliance and legal matters correct is essential.

At the Ayers Group we can introduce you to reputable financial advisers who can help you grow your wealth. We can also remove the day-to-day burden of work-related administration.

Contact an expert at the Ayers Group today.