Superannuation - SMSF Advisory

Australia has strong regulations around superannuation to ensure that our ageing population has the means to live when they retire. It’s often easier to pass over the management of your fund to a bank or super provider so you don’t have to think about where the best investment is being made. In turn, you can rely on them to invest wisely and receive gradual return. 

For others who want to be a bit more financially savvy, self-managed super funds (SMSF) are an option. SMSFs are a legal tax structure and are similar to a regular super fund in that they have the primary purpose of providing your retirement and are under the same regulations by the Australian Tax Office.

However, choosing to manage your own super fund can be complex and time consuming. Some of the ongoing obligations including acting in the role of trustee or director, plan and implement an investment strategy that will help you achieve your retirement needs and keeping detailed records and audits per year.

Some of the things to consider when you’re establishing an SMSF are:

•    Pre-existing sum of money in the fund to reconcile the set up and yearly running costs
•    Budgeting for ongoing expenses such as professional accounting, tax compliance, auditing, legal and financial advice
•    Factoring in considerable time to manage the fund and research investments
•    Staying up to date with changes in the law that need to be reflected within your super fund.

Many SMSFs can be managed by advisors for a fee, which may be equivalent to the time, and money spent managing the fund yourself. The benefit of the SMSFs is the freedom and flexibility to invest in what you choose as opposed to being confined by limited gain from larger providers. 

If you’re thinking about taking the leap into a SMSF, take a look at this video created by the Australian Tax Office explaining what’s involved with managing an SMSF.