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Often to fund a comfortable retirement, additional investment of surplus savings need to be invested into superannuation. Superannuation is considered one of the most tax-effective ways to save for retirement. The common misconception is that superannuation means investing in volatile growth assets, such as shares and international funds. In reality Superannuation allows you to invest your money across a wide range of asset classes. You can usually choose a mix of these investments, in line with your preference of exposure to investment risk and return. Furthermore, there are several options when selecting a professional investment manager to look after your money in the fund.

In recent years our Federal Government has encouraged us all to provide for our own retirement by bringing in various benefits and concessions within superannuation. These include the Government Co-contribution, the opportunity to Salary Sacrifice and other incentives that may make superannuation an attractive investment option whether you are an employee or self-employed.

Another strategy is to consider life insurance through your superannuation fund. Premiums are often more affordable as they are paid from contributions after-tax dollars which can assist with your family budget. As there are potential tax considerations on benefits paid, you should obtain professional advice when considering these options. We will be pleased to help you determine if it's appropriate for you.

Self Managed Superannuation Fund (SMSF)

After the Global Financial Crisis, SMSF's have become the largest and fastest growing segment of the superannuation industry.

The difference between a SMSF and other types of superannuation funds is, generally, that members of a SMSF are also the trustees. This means the members of the SMSF run it for their own benefit.

The main reasons for setting up a SMSF are around control, investment choice and flexibility. As a trustee, you need to adhere to the rules and know that you are ultimately responsible for the running of the fund, even if you use tax, financial and super professionals to help you to manage your fund.

Some of the responsibilities and issues that superannuation trustees often require professional advice and support include.

advice and support include;

  • Setting up a SMSF
  • Managing your fund's investments

    - Your Investment Strategy document

    - Investment choices including direct property and direct shares.

    - Ownership and protection of assets

    - The sole purpose test (for your retirement)

  • Contributions and rollovers including in specie transfers
  • Reporting, record keeping and administration
  • Understand compliance and penalties
  • Borrowing within the super fund.
  • Accessing your super , including pensions and lump sum withdrawals.
  • Estate planning considerations
  • Insurance structuring within the fund
  • Winding up your fund 

As a SMSF trustee, you are ultimately responsible for running your SMSF. It is most important you understand the duties, responsibilities and obligations of being a trustee. We can provide advice and ongoing support for all the above requirements to ensure you are receiving the maximum benefit from your SMSF whilst meeting your trustee obligations at the same time.

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