Is an SMSF right for me and my situation?

Self managed super funds can provide everyday Australians with a host of advantages in relation to their retirement savings. This can include a much wider range of investment choice, (including Real Property assets), more flexibility and control, The ability to pool your assets with other members, and in certain cases, can provide a much more cost-effective structure for your retirement savings.

However, being the trustee of an SMSF is not a task that should be taken lightly. There are a number of obligations and responsibilities, as well as significant penalties for not adhering to all the rules. Put simply, establishing an SMSF is not for everyone.

There are two main groups of investors who generally find establishing and operating a SMSF to be a fantastic option for their retirement savings.

1. Business owners operating from a commercial premises

Holding your business premises within a self managed super fund structure can provide a host of advantages including the protection of the property asset against any claims on the business, significant ongoing and long term tax advantages, as well as the security of a long-term premises for your business.

2. Individuals with combined super balances of over $500,000

While operating a self managed super fund can be more time consuming, there can also be significant cost savings. This is due to the fact that operating costs for a self managed super fund tend to be fixed, whilst fees and costs within a platform super fund (either retail or an industry fund) are percentage based and increase significantly as your balance grows. As a rule of thumb, funds with a balance in excess of $500,000 are generally more cost-effective within the SMSF environment.

As with all superannuation and investment decisions, it is extremely important to consult with professionals to ensure that you have all the facts and can make informed decisions about whether or not an SMSF is right for you and your circumstances. Ensure you only deal with professionals who hold a ‘SMSF Specialist’ designation and are experienced with the complexities of establishing and operating a self managed super fund.

Collective Wealth Advisers are ‘SMSF Specialist’ advisers who can provide advice, establishment services and ongoing support for existing self managed super fund trustees as well as those looking at their options.

To understand if an SMSF is the right fit for you and your situation,  contact us at Collective Wealth Advisers.  We tackle today, and tomorrow, together! 

  • Aaron Steer
  • Jan 28 2022
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