A Self-Managed Super Fund (SMSF) is a superannuation fund with no more than 4 members. The members act as Trustees of the fund and take on full legal responsibility for the fund. As Trustees, the members are responsible for the day-to-day operation and administration, including investing the funds assets to provide for future retirement benefits.
SMSF’s are regulated funds which must comply with the Superannuation Industry Supervision (SIS) Act at all times.
ADVANTAGES of SMSFs –
SMSFs can allow members to –
- develop an investment strategy which is specific to individual needs, rather than investing via a pooled structure
- be directly involved in making investment decisions for the fund
- invest in alternative asset classes not necessarily offered in large funds, such as direct property
- acquire business real property which can be leased back to a related party, to use in business
- borrow via a Limited Recourse Borrowing Arrangement (LRBA) to acquire assets such as property
- combine super balances with other members to increase purchasing power for investing
- pay benefits in the form of an in-specie lump sum benefit
- pay benefits in the form of an income stream that is tailored to a member’s personal requirements
- Trustees can implement death benefit planning strategies tailored to the member’s specific needs & circumstances
- SMSFs can accept in-specie contributions, that is, contributions into the funds of assets rather than money
At Professional Consultants Group we are trusted professionals with the SMSF industry. From setting up your SMSF, to accounting, investment advice, insurances and estate planning, we are proud to cater to your every need. If you believe a Self-Managed Super Fund is the right fit for you, and would like further information or to discuss in detail the points listed above, please contact either Don Ricci (DJ) or Jonathan Signore on 08 83303800.