Our guide to SMSF (Self Managed Super Funds)

The what, how and why of SMSF

Wealth planning for retirement is more important than ever.

If you answered yes to any of the above, a self managed super fund

may be for you.

What is an SMSF?

Is an SMSF right for you?

Securing and growing the proverbial retirement ‘nest egg’ can be

achieved in a number of ways these days. Flexibility and investment

diversification could be what you require. The ability to tailor your

investments to your own needs, and perhaps include property in

your superannuation portfolio may be your goal.

Are you actively planning your retirement and interested in investment

strategies? Are you keen to take a more active role in how your super

is invested? A self managed super fund may be for you.

A tale of trusts, compliance

and taking charge.

A self managed super fund is a way of taking control of

your super yourself, rather than through a fund manager.

It’s a private super fund run jointly by its individual

members, created as a trusteeship that yields benefits

to its members upon retirement, much as a traditional

super fund would.

SMSF trusts can have up to four members (often

husbands, wives or other family members) and like all

super funds, their purpose is to help you and other fund

members save for retirement. The main benefit of an

SMSF is that rather than being part of a fund that invests

for the collective needs of its members, you run your

own show and tailor your investment strategy to your

own needs.

There are strict compliance and reporting requirements

with an SMSF, as it’s governed by Australia’s complex

super laws. Those laws affect the contributions your fund

can accept, the types of investments you can make, the

paperwork you need to maintain and the way you can

access your money. Each fund also has a trust deed that

is a legal document outlining the fund’s individual’s rules,

objectives and details, such as whether benefits can be

paid as a lump sum or income stream.

• Do you have a combined $150k to invest (you and up to 3 others)?

• Do you want to take charge of your super?

• Do you want more investment options?

• Do you want greater flexibility and visibility?

How does an SMSF work?

Trustee structure Annual tax return and audit

Investing in property through an SMSF

Fund bank account

Like all super funds, an SMSF is all about saving

for, and providing, financial benefits to members

in retirement. As a trust, an SMSF needs a trustee.

There are two structure options:

Company trustee: You can appoint a company as

trustee, with one or more fund members acting

as company directors. This can allow for simpler

recording and registering of assets, and provide

administration efficiencies.

Individual trustee: Here, each fund member will be

a trustee, and vice versa. Each fund must have a

minimum of two trustees.

There are many legislative, reporting and

administrative obligations to stay on top of, with

penalties for non-compliance. As well as recording

your transactions, every year your fund needs to

lodge a tax return and an approved auditor needs

to conduct an audit of your investment statements.

Using a professional service such as Financial Pulse

for your administrative needs offers re-assurance,

accuracy and peace of mind.

If you’re interested in establishing an SMSF, you can

invest in a range of things, including property. With

an SMSF, you can invest in all types of property,

including residential property, commercial property,

industrial property and even a farm (under certain

circumstances). Using a self managed super fund

to buy property is becoming increasingly popular,

but you have to ensure it supports your overall

investment strategy.

As well as a trust deed, an SMSF has its own Tax

File Number (TFN), Australian Business Number

(ABN) and transactional bank account. Each member

makes superannuation contributions to that account.

Then the trustees invest that, in the name of the fund,

following the fund’s agreed investment strategy.

The Financial Pulse Difference

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We bring specialised expertise to the table, that’s both impartial and safe.

We stay on the pulse of the latest investment opportunities

and compliance requirements. We offer competitive fees and

more innovative solutions than a traditional accountant, and

have a nimble, proactive approach to helping you grow

your super.

We have access to the latest research, resources, solutions

and technologies, we offer a full administrative service that

helps to navigate the reporting and legislative obligations with

tax and compliance you face when running your own SMSF.

We’ll help you take charge of your super today. We let you focus on your investments by taking the hassle out of all your administrative and regulatory needs.

Why work with Financial Pulse?

If you’d like to know more, sign up for your

FREE consultation today or email us at

info@financialpulse.com.au

Free Consultation

Financial Pulse offers a FREE consultation to discuss your eligibility for

an SMSF, and to see whether it’s right for you.

Establishing Your SMSF

We help you establish your SMSF, create a trust deed and other

compliance requirements such as TFN, ABN and bank account.

Investment Recommendations

We provide investment recommendations based on your

members’ needs.

Ongoing support

We ensure all regulatory documentation is up to date so your SMSF

is fully compliant within Australia’s complex super laws.

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