Saturday, July 14, 2012

Self Managed Super Funds - What Are the Benefits of SMSF's?

Investment Frontiers SymposiaInvestment Frontiers Symposia (Photo credit: apec2011ceosummit)What most of us understand as Super Funds are set up by a central trustee for the benefits of all the members. The difference for a Self Managed Superannuation Fund (SMSF) is that the Trustee could be you. The benefits of this approach are as follows:
• You can still choose how contributions are made as
• You need only a minimum of $150,000 in order to make the investment worthwhile
• You can nominate specific beneficiaries or leave it to the fund trustee to administer benefits more efficiently to reduce taxes
• All members can make decisions about the fund
• Can have insurance policies for members
• Access to information to assist in running the fund from the ATO, including provision of forms
• You choose how your funds will be invested
Pooling of assets for increased diversity of investment
• Can make payments to individuals at the same time as collecting contributions from others
• Access to core specialists including an Accountant, Financial Planner, SMSF Specialist, Legal Practitioner
You can choose whether your contributions are employer contributions, personal contributions, salary sacrifice contributions, super co-contributions or eligible spouse contributions.
All members can make decisions about how their funds are managed by choosing their investment assets, as long as they comply to the trust deed which outlines the investment strategies, then the investment may take place. Each member will have their own account of contributions, investments and fees.
If allowed by the trust deed, insurance policies such as life, Total and Permanent Disablement and Income Protection may be facilitated through the superannuation fund. This will be reflected directly in the member's account.
The ATO has up-to-date advice about Self Managed Superannuation Funds to keep the trustee informed about changes in legislation. The trustee will rely on this advice in making investment decisions, book-keeping and reporting obligations.
In addition, you can seek advice and support from Accountants, Financial Planners, and/or Legal Practitioners that have specific SMSF training and qualifications.The importance of this can't be emphasised enough. It is possible to sign up online for free. This isn't something that most of us should consider. Sooner or later you will have to pay fees. Just make sure they make sense and you are not being charged excessively. It is far more important that you find the right specialist who invests in investment property and knows how to set up the structure that suits you best, aligned to your overall investment plan
The good news is you will never be alone in managing your own Self-Managed Superannuation Fund as there are many specialists available to support you.
Discover How You Too Can Retire Early with a Well Designed Investment Property Plan.

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