Self Managed Super Fund

Self-Managed Super Funds: Benefits and Risks of Going Solo

Going back few years, more young Australian’s have to lead the charge as it pertains to taking control over their self-managed superannuation with reports from the Australian Taxation Office disclosing that the median gets older of people of newly proven self-managed super funds decreased to 48 years, in comparison to 59 years for all those SMSF members.There are now 577,000 SMSFs possessing $622 billion in investment funds.

A lot more than 1.1 million Australians have finally turned from retail or industry money with another $1.7 billion of fund outflow to self-managed superannuation funds for the1 / 4 ending September 2016.  So while more Australians are taking control of their self-managed superannuation, here are a few reasons why over a million Australians are choosing to acquire their super fund and some of the traps to avoid.

The Control Has Been You

When you set up a self-managed superannuation, you become a trustee of the finance.  You can decide on how much to add and where you can invest those funds, but you do have tasks so make sure you understand these and the guidelines.

Structured properly, an SMSF can become more cost effective than having multiple superannuation money. Make sure you do your results first as typically much larger balances are certain to get more cost efficiencies.

Tax efficiency

You can minimise tax payable by utilising smart strategiespersonalised to specific associates. Payment of taxes can be deferred, of course, if investing in stocks, excess imputation credits are refundable to the SMSF.

Family fund

An SMSF is a finance where you could have up to four members of the family with pool money and investments instead of each having another super fund. It is also one of the very most versatile and tax-effective ways for an associate to provide lump amounts or income streams to his or her surviving spouse. Customers will have different appetites to associated risk, and ages may vary so make sure your investment strategy attracts this.

Flexibility

Multiple accounts can be set up for a member in pension and income options can be customisedindividuallyto their wants.

An SMSFs are not for everyone and you ought to seek professional advice to determine whether it is right for you and if the benefits outweigh the expenses. Typically the bigger your balance, the more cost-effective they can become.  Also, keep in mind that not every business adviser is accredited to suggest in the self-managed superannuation area so make sure you speak to theperson who is.

As the trustee, there are some obligations you must meet, and while some trustees go it together, you must have enough time and skills to do it as opening the rules can mean that you lose tax concessions and be heavily penalised.

Associating with a professional financial adviser can help you determine the best investment strategy for your circumstances, monitor the conformity and guide you using what is and isn’t allowed under the legislation. Keep in mind; your super cash should be handled expertly so seek the advice of a self-managed superannuation financial adviser who has the skills and experience in this specialised area to ensure your retirement is an extended one.  See more this site: smsfselfmanagedsuperfund.com.au

 

SMSF

5 reasons for setting up an SMSF

 

A self managed super fund (or SMSF) is one of the most up and coming trends for investing your superannuation (a regular payment made by an employee into a pension fund). For years, the trend used to be investing those payments into either a retail or an industry superfund. Times are changing and, according to www.smsfselfmanagedsuperfund.com.au, one of the best ways to invest over the last ten years  is into a self managed super fund.

What are the best reasons to invest in an SMSF?

  1. An SMSF helps you to take control of your superannuation – This type of fund allows you to choose where you invest your money. Being able to choose between different types of investments (international shares, residential and commercial property, term deposits, etc) puts the control back in your hands. If your money isn’t performing like you’d like it to, change it! The power is yours to get the returns you’re hoping to see.
  2. An SMSF will allow you to save money on feesSMSF funds are one of the most cost effective funds out there. Most fees are set, no matter how much money you have to invest in your self managed super fund. This is very different from a lot of other funds. If you are investing a thousand or ten thousand, you should end up paying the same amount. This is especially beneficial for those just starting out.
  3. An SMSF allows you to manage up to four superannuations in one single fund – If you’re managing other people’s funds as well as your own, changing to a self managed super fund allows you to consolidate to a fund with one annual fee. This usually counts for up to 4 people.
  4. An SMSF allows you to combine Pension and Accumulation funds in one place – With some standard funds (namely, retail and industry funds), your money is separated into two different funds : one pension fund and one accumulation fund. An SMSF allows those benefits to be combined and managed in a single place. This reduces the fees you have to pay to manage two separate funds into one.
  5. An SMSF allows you to transfer personal assets into a fund – Instead of cash, a self managed super fund allows you to contribute assets (for example : managed funds, shares, and commercial property). These are called specie contributions and allows you to consolidate or combine family assets under a single tax umbrella. However, you should make sure you consider capital gain taxes in this type of contribution. Depending on the amount you are investing, it might not make sense in relation to the taxes.

In closing, you should definitely consider the advantages of switching your money to a self managed super fund to make the most efficient use of your investments with the fewest fees. It allows you to combine multiple funds, multiple users and gives you the flexibility to invest how you want to invest.

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SMSF Auditor – Do You Need to Have Your SMSF Audited?

The federal government intends to look at the Cooper Review recommendation on SMSF auditor autonomy to determine whether or not alterations are needed to the current standards. Leon Yap delivers tremendous experience auditing across several legislative frameworks and is an accredited professional SMSF auditor. A good solid Self-Managed Super Fund is necessary to be audited by your Recognized SMSF Auditor.

Self-Managed Superannuation Funds (SMSFs) have been capable to buy property, when it is in accordance with one’s own investment system, although not many of them meet the expense of two due to the fact until September 2007 they could never borrow. The Superannuation Industry Supervision Act 1993 demands trustees of the SMSF to be able to have their particular fund audited each year by a licensed SMSF auditor. Just about all superannuation funds usually are necessary to appoint trustees.

The ATO’s SMSF Announcement gives regular information and facts for trustees connected with self-managed super funds, income tax agents, authorized auditors, financial planners and also administrators around key regulatory and administrative topics, and also any kind of essential advancements of great interest with the industry. Due to the laws around super funds, they can be dealt with quite diversely pertaining to lending purposes. In order to be eligible to tax concessions available to complying funds, a self managed fund must satisfy selected residency conditions and be viewed as a resident regulated fund all the time within the income yr.

An in-house asset is really a loan to, a great investment in, or perhaps a lease with, an associated party of your fund, or even an investment within a connected trust of the fund. Normally, being a trustee you can be restricted from loaning to, investing in or perhaps leasing to an associated party of the fund more than 5% of the fund’s total assets.

The SMSF can also be necessary to be audited by a great Authorized SMSF Auditor. Furthermore, the increased concentration on important problems such as auditor independence and SMSF auditor proficiency requirements has heightened the interest being paid to SMSF auditors along with the robustness with the audit that they conduct for your SMSF. The SMSF Audit Firm audit organization not only eliminates any independence issues yet also enhances your entire SMSF service offering to your current clients by partnering through a market prominent expert SMSF service provider.

In certain cases it might be organized for the SMSF Audit Firm auditor to call at your practice either to talk about our own services or conduct the audits.

The service is definitely very dissimilar to the common “once a year” services that a lot of clientele of the accounting practice are generally use to. We are able to offer a whole system including audit or perhaps you may wish to conduct the audit.
For further details about self-managed funds, go to www.smsfselfmanagedsuperfund.com.au and get lots of detailed information inside their website. You can also search directly to search engine if you don’t get what you want or if you are still looking for more.

FInd out more informations in our post here: http://www.crocotta.ca/smsf-administration-tasks-activities/

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SMSF Administration Tasks and Activities

An SMSF or self-managed superfund is a method of preparing for financial independence during retirement and is best described as a “DIY superfund” as compared to its other superannuation counterparts. It means the trustee who manages and does the superfund administration also the recipient of the payout upon retirement. You must be aware on this because this is somehow very important to know as you will be getting your financial status involved.

When choosing an SMSF auditor that can perform audits at arm’s length, as set out by the ATO, individuals and accountants want to consider organization’s that deliver the best expertise in combination with great customer service.

Before setting up your self-managed super fund, it is essential to know the important tasks and activities involved in the set-up process and ongoing management. Below are some important to-do items essential to an effective administration of self-managed superfunds, in no particular order:

  1. Over-all Compliance

First of all, SMSFs need to be compliant with a number of laws, rules and regulations set out by the taxation office and as mandated by the government. You can even visit their website for more available details and you can check valuable information with them about self-managed super funds.

  1. Maintenance of Relevant Records and Documentations

Keeping and updating records and the documentation reflecting the administration and management of your superfund is a mandatory. These records will be used by the taxation office in auditing your SMSFs to see that there is compliance in every step of the process. The taxation office requires the records that should be kept include the following:

  • Meeting transcripts containing important investment decisions
    • All SMSF transactions that took place
    • Operating statements, statements on the fund’s financial position and other annual statements
    • Declarations from trustees
    • Copies of information provided to members (such as returns)
    • Any tax-related documentation such as income tax and deduction documentation
  1. Appointment of an Accredited Auditor

The trustee is mandated to appoint an independent, approved auditor to audit the fund. A required report compiled by the auditor must be presented to the trustee. It should be given to the trustee on or before the fund is required to lodge its SMSF annual return. The main task of the SMSF auditor is to examine the funds’ financial statements and assess the fund’s compliance with the laws and regulations governing superannuation in general and SMSFs in particular. More details here: https://www.moneysmart.gov.au/superannuation-and-retirement/self-managed-super-fund-smsf

  1. Filing of Statements and Returns

SMSF administration also means filing the required returns and statements. For example, the trustee must lodge the annual return by the due date to:

  • report income tax
    • report super regulatory information
    • report member contributions and pay the supervisory levy.

When benefits are rolled into other funds, an accurate rollover benefits statement must also be lodged.
Because SMSF administration is so complex and time consuming, it can be highly beneficial to work with an experienced accountant and SMSF auditing expert. It makes it much easier to manage the SMSF administration and ensure ongoing compliance of your self-managed super fund.

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Australian Superannuation – Hot Tips to Grow Your Super

The superannuation industry in Australia is going through a remarkable period of growth and media awareness. (We have all seen the recent frenzy of advertising activity, press and TV coverage.)

Today, ordinary people are now realizing that a Government pension won’t give them the lifestyle they want in the years when they are not earning an income. The need to save money for the future is more than a hot topic, it has become a big wake up call to millions of workers who have low superannuation savings.

The standard superannuation contribution by employers is currently 9% of your salary, but the reality is this is not enough to cover basic living expenses and bills in retirement, never mind that elusive trip of a lifetime overseas.

So, how about some easy ways to grow superannuation? Here are five top suggestions:

1) Regular contributions really add up.

Starting early pays off. By putting more money each week into your superannuation account, (in addition to the 9% employer contribution) the difference can be remarkable. For example: if you added $50 a week starting from the age of 25, this grows to over $160,000 extra by age 60.

2) Hold a garage sale. Turn trash into treasure.

No spare cash? Look around your house for old furniture, sporting goods and electrical items. Put the proceeds from your weekend sale into super. Your contribution will earn compound interest until retirement.

3) 3 million Australians have unclaimed superannuation. Are you one of them? 

One in three workers have unclaimed self managed super. It’s a huge statistic. In total, there’s AU$7.2 billion, or an average of AU$1,600 per account waiting to be claimed by Aussie workers. It may not seem a large amount, but if you dropped $10 in the street, you’d quickly pick it up! What’s more, this is a no cost service and it also allows you to transfer old super into your current superannuation account.

4) Roll your super into one fund. Pay less fees.

If you have worked casually or moved around from state to state, you may have several superannuation accounts with low balances – and you’re paying fees for each one of them. Fees are taken from any investment returns you have made which mean less money in your account. The higher your fees are, the harder your fund’s investments need to work to provide adequate returns.

It makes sense to consolidate all your balances into one account. One fund is easier to manage. Less paperwork to worry about. And of course, you save on paying fees. It is important to look around and select funds which charge low to reasonable fees.

  1. Choice of Fund. Your personal situation.

On July 1st, 2005, a major industry initiative took place with the launching of “Choice of Fund”. Are you one of the many eligible workers who can make a new choice about which fund you belong to and where your super is invested?

A word of advice, do your homework. Don’t just listen to your mate, Bob!

Compare industry performance and past results. Look at the entry fees and exit charges you may have to pay. Review member benefits such as life insurance coverage. (Will you need a new medical to get the same coverage you currently have?)
Changing funds could be a good move, or may not improve your returns at all.

The final tip. Whatever you do with your self-managed super, think super carefully.

Calculations assume growth of 6.25% and inflation of 3%, which are common industry assumptions in Australia.

Visit http://smsfselfmanagedsuperfund.com.au/ for more informations and help.