SMSF

What is a SMSF (Self Managed Super Fund)?

A Self Managed Super Fund (SMSF) is a private super fund that you manage yourself. Traditionally, your superannuation gets paid by your employer into an industry or retail superfund, such as Hesta, Australian Super, etc. You can select the strategy that you would like your superfund to employ with your superannuation balance to try and achieve the highest return possible. However, you will now have control over the specifics of where the money is invested or over the fees charged.

A SMSF is typically established for people who want more control over their superfund or believe the can out-perform industry & retail superfunds. Typically used to invest in real-estate assets, however an SMSF can invest in shares, term deposits, bonds, overseas investments, collectable items, to name a few. 

Just like an superfund, an SMSF will attract running costs. These will include costs to maintain the assets within the superfunds (particular if there are real estate assets), accountant costs, admin costs, etc. These costs should be taken into consideration when determining if an SMSF is right for you.

Who should I involve in setting up & operating my SMSF?

You should involve the following professionals if you are interested in beginning your SMSF

Financial Advisor: They will guide you to ensure that a SMSF will be able to bring you closer to reaching your financial goals. They will be able to explain the intricacies of an SMSF as they can be complex. Getting a financial advisor who understands SMSF structures would work best in your favour.

Accountant: An accountant will be able to set-up all the trusts including the bare trust for each asset and advise of the most appropriate structure for your circumstance. They will be able to provide you with accountant specific advise and be able to prepare the SMSF financials as required. Getting an accountant who understands SMSF structures would work in your favour.

Legal advisor: A legal advisor is required should you choose to set-up an SMSF. Part of the processing includes receiving legal advise to ensure that you are familiar with the risks & responsibilities of operating an SMSF, what you can & can’t do whilst operating an SMSF and help you prepare rules of how an SMSF will operate between all the trustees. A legal advisor is required to certify that you have the knowledge to operate an SMSF so they will be a crucial step along the way.

Learn More

2K Finance understands that SMSF’s are complicated and that starting out you may need extra help. This is why we have partnered with Registered Training Organisations to provide all our clients access to an accredited Introduction To SMSF Course for FREE. This was designed with our principle of providing education to our clients for them to reach their goals.