- Published on 09 Jun 2016
- - Self Managed Superannuation
LifeTime Financial Group Pty Ltd offers a specialised range of Self managed Superannuation (SMSF) services.
We are accredited with SPAA (SMSF Professionals Association of Australia), the peak professional body for Accountants, Financial Planners and Lawyers who offer specialised services and advice in this more complex area of Investing.
Anthony Stedman and Adam Watts both hold the SMSF Specialist Advisor™ accreditation.
We have prepared a brief summary of the advantages and disadvantages of using Self-managed Superannuation.
Advantages
Investment Choice
You will have greater scope to invest in a wider range of investments than that which would be available through a public offer superannuation fund. Depending on your trust deed – these investments could include term deposits, bank accounts, direct shares, collectibles, real estate, etc.
Control
As trustees, you have complete control over the fund and its investments (within the legislative framework). As trustees, you make all the decisions. Of course, you are able to call on professionals (such as Lifetime Financial Group) to help you make these decisions.
Estate Planning
SMSFs may provide you with a range of estate planning options – including the form in which benefits are paid to your beneficiaries/estate (pension, lump sum or a combination of both). As trustees, you have complete control over the fund and it’s investments (within the legislative framework). As trustees, you make all the decisions. Of course, you are able to call on professionals (such as Lifetime Financial Group) to help you make these decisions.
Disadvantages
Trustee responsibility
Each trustee is responsible for the decisions and operation of the fund. This includes the overall legislative compliance. However, the trustees can seek professional advice where this is considered appropriate – for example, financial planning advice, taxation & legal advice, etc.
Extra costs
A SMSF has additional costs such as the auditing of accounts, tax return administration and supervisory levies. However, where the fund has significant assets, these costs can be relatively low as a percentage of the fund assets. LifeTime Financial Group would not generally recommend the establishment of an SMSF arrangement where the fund assets are less than $250,000
Complexity
Running your own SMSF can be complex. Whilst the team at Lifetime Financial Group can remove a considerable amount of this complexity, there is no doubt the SMSF path is much more involved when compared with public offer superannuation funds.
Remember to seek the services of someone accredited by SPAA before embarking on this journey.
Would you like to take the next step?
LifeTime Financial Group are specialist (holding appropriate accreditations) advisors who are ideally positioned to assist you in managing your SMSF.
Would you like to discuss your personal position and Income Protection needs further with one of our highly qualified financial planners?
Why not call us today on 03 9596-7733? There is no cost or obligation for our initial conversation/meeting.
LifeTime Financial Group. A leading privately-owned Melbourne based Financial Planning practice.