WHAT IS
A SMSF?
A SMSF is a small super fund with no more than six (6) members that is managed by its members who are also the trustees of the fund. A SMSF's sole purpose is to provide benefits to members upon their retirement, or to a member’s beneficiaries in the event of their death.
SMSF’s differ from public offer (retail, corporate or industry funds), as members of those funds are not responsible for managing the fund and complying with the law.
SMSF’s are a great way to save for your retirement. Listed below are some of the advantages and disadvantages of running a SMSF.
SOME ADVANTAGES OF A SMSF
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Control
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Lower Costs
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Investment flexibility
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Enjoyment from managing your own finances
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Tax advantages
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A wider range of Insurance options
SOME DISADVANTAGES OF A SMSF
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Legislative risk of non compliance
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Not having a sufficient amount of capital in the fund to be cost effective
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Not suitable for people who plan on moving overseas or being overseas for an extended period of time (more than 2 years)
THINKING
ABOUT
SMSF?
If you want to manage your own super, there are many factors you need to think about. To work out whether a SMSF is right for you, it is important you take into account the following points:
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Consider your options and seek professional advice.
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Make sure you have enough assets, time and skill to run your own fund.
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Keep up to date with the super and tax laws and understand the risks.
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Tailor your trust deed and investment strategy to suit the members of your fund.
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Make sure you can meet your record‑keeping and reporting obligations.
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Make sure you understand your annual auditing obligations.
There are strict rules that govern how you can use a SMSF and how you manage the fund’s investments. Your fund must be maintained, at all times, for the sole purpose of providing retirement benefits to your members. Please click here to visit our FAQ’s page for answers to some commonly asked questions.
ALREADY HAVE
A SMSF?
If you already have your own SMSF and are either looking for an independent service provider who won’t bundle your assets into predefined investments, or mandate which broker you can or cannot use, or are simply after a more experienced and knowledgeable group of professionals to assist you, then we may be just the people you’re looking for.
A majority of service providers ‘streamline’ your affairs and only allow you to invest via a predetermined broking and banking account, or with a particular fund manager which in some cases allows them to receive a ‘referrers fee’. At Lighthouse Super Solutions, we place no restriction on who you invest with or what you invest in (provided it complies with the law of course!) which gives you the freedom to place your money in investments you feel most comfortable with. It’s our job to guide you along the way with our advice and assist with your administrative, investment, reporting and auditing obligations.