Is a Self-Managed Super Fund (SMSF) right for you? Already have a SMSF but want to make it work harder for you?
Over 1,100,000 Australians run their own SMSF. But the news media is in a frenzy at the moment about SMSF’s and property investments.
We understand that SMSF’s don’t suit everyone, so it’s important you get the right information to decide for yourself.
To assist you to make a correctly informed choice, here are the FACTS:
Why do people set up their own SMSF?
- To be able to make their own decisions about where their super is invested.
- To invest in your own chosen property (business premises or residential).
Is it expensive to set up a SMSF?
No, it isn’t. You need a SMSF Trust Deed (the document that contains all of the rules for running your super fund) and we recommend you incorporate a Company to be the Trustee (the decision maker) for the SMSF. Our price for this is $3,000 plus GST, which includes preparation of all required documents, establishment of a new Cash Management Account, and everything legally required for a SMSF. For example, if you have $200,000 in super, then the setup costs are 1.5% of your super balance – very low for setting up your financial future!
What are the ongoing running costs of a SMSF?
The ongoing costs can start from as little as $300 + GST per month for the administration of your SMSF (includes tax returns, annual financial statements, minutes of Trustee’s meetings) plus $600 + GST for the annual audit of your SMSF.
How does a SMSF compare with standard super?
For a side by side comparison of approximate costs of a SMSF to that of an off-the-shelf super fund recommended by, say your bank, give us a call today.
How much super do I need to set up a SMSF?
Some new media stories suggest you need at least $250,000 (or even higher) to make it cost effective to have a SMSF. We disagree. A SMSF is your family wealth creation vehicle. Even if you have as little as $100,000 in super right now, it may make sense to establish a SMSF and then set up life insurance (owned by the SMSF) on SMSF members while they are still fit and healthy. Also, in many situations using a SMSF can give you much better estate planning options.
As an example, if you have $100,000 in super and purchase a property (using a borrowing arrangement) valued at $400,000, then you would have a SMSF with $400,000 in gross assets. Assuming a capital growth rate of 5%, you would generally expect the larger amount of $400,000 growing would provide a better outcome than the smaller amount of $100,000 growing. This is why many people consider a borrowing arrangement for a SMSF.
However, at the end of the day an SMSF has to be in your best interests and we will need to establish this before we can make any recommendations.
What investments can I make in a SMSF?
Typical investments include shares, cash, term deposits, and property. There are specific rules about what you can invest in, so it’s important you seek our advice before you make any decisions.
To assist you to make an informed decision, contact us TODAY on (03) 5561 2643.
Don’t delay. The sooner you get started with the right advice, the sooner you will grow your assets to have a better financial future!
Business Development Specialist - Ceebeks Business Solutions for GOOD
I love business and the ability to change peoples lives through them!
At Ceebeks Business Solutions for GOOD, we get up every morning to positively impact young families in business by making their businesses REALLY work so that we all make an even bigger impact together. The rewards that bring allow our team ('the fantastic five') to make small but powerful contributions to impact our local community, our country and the lives of those less fortunate around the world.
You see, something quite remarkable happens when we work together, for example, the gift of water is made when we prepare a tax return, the gift of a goat is provided when we help a new business start-up, the gift of shelter is forwarded when we organise a home loan. When we work together, we actually change the world!
I am a business development specialist with over 36 years experience, a CPA, an authorised representative of MyPlanner Ltd and a credit representative of Outsource Financial Pty Ltd. I have recently co-authored an International Best-Selling Book 'Legacy - The Sustainable Development Goals in Action' and am about to publish my first book - 'Chasing the Dream! - How to Grow a Business in these Amazing Times', host a daily blog/vlog on our small business Facebook community group page 'Chasing the Dream, and with our Team run a monthly event for small business owners called 'The Chasers Meet-Up', where a guest speaker presents a topic and tips and strategies are openly shared.
In 2015, our business won the Change GPS International Member Firm of the Year and in that same year, I was a founding member of the Global Accounting Movement - Accountants for Good. We were recognised in 2016 by Steve Pipe in his international publication - The World's Most Inspiring Accountants and Featured in "The LinkedIn PlayBook" by world-renowned social media strategist and consultant, Adam Houlahan. In 2017, we were in the Top 25 Most Popular Accounting and Tax Services Award for search4accountants, B1G1 Business for Good Top 100 Giving Businesses in the World and a Semi-Finalist in the 2017 Victorian Regional Achievement and Community Awards. In 2018, we were an Australian Accounting Awards Finalist in "Community Engagement Program of the Year", a Semi-Finalist in the Victorian Regional Achievement and Community Awards 'South West TAFE & Deakin University South West Regional Achiever Award', a Nominee in the Victorian Regional Achievement and Community Awards 'Regional Development Victoria Business Achiever Award', and featured in the Top 25 Most Popular Accounting and Tax Services Award by search4accountants.