Know if SMSF is right for you

Self-managed super funds, also simply known as SMSFs, are one of the fastest growing ways for Australians to manage their superannuation and prepare for life after work.

SMSF can be a compelling option; it offers a number of tax benefits, greater control, and the flexibility to choose your investments.

But if you want to start a SMSF there are a lot of things you need to know. And here at SCM, we can help you navigate the set up and management of your SMSF, while also providing independent advice on a number of areas of your SMSF.

What is an SMSF?

An SMSF is an alternative super fund structure to that of traditional super. An SMSF can provide additional flexibility tailored to meet member goals and objectives that may not be available in traditional superannuation structures.

You set the fund up yourself, independently of any financial organisation, super provider or bank. And you have more control with regards to key decisions.

Your SMSF can also be used to purchase life insurance, and many trustees enjoy several other benefits from doing so.

What should you consider?

The main feature of SMSFs is that you and your fellow members must commit to managing and maintaining the accounts yourselves. Will you have the time to do an effective job? And are you equipped with the proper understanding to manage it properly?

SMSFs take time and a lot of effort – the fees you pay in a traditional super fund means a lot of the administrative work is looked after. Here, you’re in charge and accountable to your actions.

Be prepared

There are plenty of other things you will need to prepare for if you start an SMSF, including:

• Understanding the capabilities and limitations of an SMSF
• Structuring your SMSF to suit your needs
• Legal issues
• Choosing accountants and auditors
• The investment and insurance strategy of your SMSF
• Planning your estate
• Technical and administrative issues
• Trustee structure

How SCM can help

As an SPAA-accredited practitioner, Scholten Collins McKissock offers our experts in SMSF to help you every step of the way, from set-up to management and the distribution of funds. We provide our clients with many SMSF services, including:

• Ensuring it’s the right strategy for them
• Educating them on the ins and outs of SMSF and how it will work for them
• Working with clients to create an investment strategy to meet their goals and objectives
• Organise client’s investments and assets for maximum earning potential
• facilitating and assisting in the ongoing management requirements of the fund
• Ensure our clients have an appropriate estate plan in place

If you need advice and help on starting an SMSF, and want a better assessment to understand if it is right for your situation and financial goals, get in touch with us today.