Now is tax time, the beginning of a brand-new financial year and a fantastic time to look at your accounting and financial options.
Perhaps you need help lodging a tax return, tips to save money in the new year or assistance with your superannuation options.
If you haven’t heard of a self-managed super fund, that’s okay, and if you have – you might want to learn more from a Gold Coast Accountant about what they entail.
Interested to see if a self-managed super fund is appropriate for you? Read more from Crest Accountants to find out.
What does a self-managed super fund involve?
A self-managed super fund (SMSF) is a private superannuation fund that is solely managed for the members.
Differing from a professionally managed retail or industry fund, you:
- Choose the investments and insurance, and
- Run every great and small aspect of the fund yourself.
SMSF’s have up to four members (these are often friends or family members), who must also be trustees of the fund. A fund must have at least two individual trustees, otherwise it must have a corporate trustee. The trustees are ultimately responsible for the fund.
Commitment and financial control/independence are the qualities people often have and value when choosing a SMSF. Working with a Gold Coast Accountant lets you understand if a self-managed super fund is an appropriate choice for you.
Let’s have a further look into the benefits of self-managed super funds.
The benefits of a self-managed super fund
When we retire, we all want our lives and finances to be stress-free. We’ve earnt and deserve it!
As an individual or a business entity, here are some attractive benefits to managing your own SMSF:
- Combine wealth and pool assets
The ability to combine superannuation assets with up to three other members.
With the GFC and the recent Covid-19 pandemic, we have seen how markets can change overnight. A SMSF means you choose where your retirement funds are invested. You control the risk and choose what actions to take, if any, when markets change.
Allows multiple members to manage a mixture of accumulation and pension accounts.
- Potential property purchase help
You may not have cash reserves within your business; however you may have accumulated wealth in super. The cash that you have accumulated in super could be the key to enhancing your business with the purchase of a premises. Instead of adding to your landlord’s retirement fund, you would be adding to your own.
- Succession Planning
Superannuation doesn’t automatically form part of your estate. You can direct what happens to your superannuation upon your death by choosing the trustees of your SMSF. You can also ensure assets stay in the ownership you desire.
- Tax strategies
Working with a Gold Coast Accountant on your SMSF will allow you to grow your superannuation savings and reduce tax payments as you move towards and into retirement.
Providing a platform for financial goal setting, visibility and financial freedom and control.
While these benefits are indeed attractive for many reasons and many soon-to-be retirees, SMSF are not appropriate for all people, because of certain considerations and risks involved.
Exploring your options with your Gold Coast Accountant
Don’t have the time or effort to manage your own super fund?
Not in the best health?
Are you not prepared for the fees or unsure of where and how to invest your money?
It’s considerations like these that point to SMSF’s not being the appropriate choice for everyone.
By consulting with your Gold Coast Accountant, you can really determine and understand all that’s involved in a SMSF. We’re here to help you, providing personalised accounting services to benefit you now and in the future.
Crest Accountants are available for all your superannuation, retirement finances and estate planning, individual, family and business accounting needs.
We’ll help you find the most appropriate super fund for you.
Need help consolidating your finances for retirement?
Contact Crest Accountants today for personalised accounting services for you.