Self Managed Super Funds

Do you have or are you considering an SMSF?

SMSFs are the fastest growing segment in Australian superannuation. According to the ATO as of March 2016, SMSFs controlled 29.1% of the $2 trillion super assets in Australia and the numbers of new funds being created and amounts invested are rapidly rising.

The vast majority of trustees create an SMSF because they want to control their own financial affairs. The idea of selecting their own stocks and shares, property investments and the feeling of being in charge of their own financial destiny has great appeal to them.

And comparing the recent head line returns many have been able to achieve with those of retail funds it seems they may have made the right decision. While some investors may have marginally outperformed the major funds there is a catch which we elaborate on further down.

What does the SMSF regulator (ATO) think?

Self-managed super funds (SMSFs) are a way of saving for your retirement.

The difference between an SMSF and other types of funds is that the members of an SMSF are usually also the trustees. This means the members of the SMSF run it for their own benefit and are responsible for complying with the super and tax laws.

Is an SMSF appropriate for you?

Now while there are valid reasons for using your own SMSF as a superannuation investment vehicle, it is not always the most appropriate choice.

As always, it comes down to your own individual circumstances and investment expertise. If you already have an SMSF, ask yourself (yes or no):

  • Do you personally manage your SMSF?
  • Do you know the current value of your SMSF?
  • Have you got a written investment strategy?
  • Have you read and understood your Trust Deed?
  • Is your trust Deed current and updated?
  • Are you aware of your legal obligations as a trustee?
  • Do understand what a complying fund is?
  • Are you an investment expert?
  • Do you live and breathe what the markets, both domestic and international are doing?
  • Do you actively trade stocks?
  • If you’re a property investor, what’s your real level of expertise?
  • Do you actively follow how overseas markets are performing?
  • Do you have the time to constantly monitor your portfolio or do you just stick to the largest stocks such as banks, telcos, major resource companies or perhaps index funds and cash, i.e. ”set and forget”?
  • And most importantly, do you understand the risk/return of your investment decisions?

Your next steps ...

If you answered 'No' to any of the questions above, you need to decide whether you're happy with your role as a trustee, the status quo of your investment portfolio and where you're at financially.

If you're on track to meeting all your financial goals, happy with the regulatory regimen and have a detailed succession plan, congratulations and all the best for your future.

However, if any of these apply to you:

  • You feel you could be making better investment decisions.
  • You are sick and tired of the onerous compliance and regulatory work required to manage your SMSF.
  • You're worried about succession planning in regards to who will look after your spouse or family members once you are no longer around or able to handle the work.

... then book yourself in for a complimentary review session with us

We will review your circumstances and the challenges you face and outline a course of action which will potentially free you and your family from the burden of day-to-day management of your financial affairs.

Call our office now on 02 9455 0665 to secure a time.

Book a FREE Initial Consultation