As the name implies, an SMSF (also known as DIY super) is a private super fund that you manage yourself. So it’s no surprise that control is the number one reason people give when asked why they chose to fly solo. SMSFs give their members control over how their retirement savings are invested. Other reasons for ... Read more
SMSF options: Should you remain invested or wind it up?
Running a self-managed super fund (SMSF) isn’t for the faint-hearted. Sometimes, an SMSF may make sense at one point, only to find it’s not the best option down the track. For instance, the flexibility an SMSF offers in terms of the types of investments it can hold may be valuable if you once ran your own business and ... Read more
Guide to transition to retirement pensions (TTRs or TRISs)
If you’re on the final stretch to retirement and would love to start winding back your working hours but you don’t think you can afford it, listen up. Ditto if you plan to keep working full-time for a while longer and want to boost your super but haven’t got the ready cash to make extra contributions. Help could be at ... Read more
How to invest in infrastructure through an SMSF
Self managed superannuation funds have a much wider array of investments available to them today than they did 10 years ago. However, some asset classes remain elusive due to the scale needed to invest in them effectively, compared to the investment capabilities of most SMSFs. Infrastructure is one such asset ... Read more
Multi-generational SMSFs: Benefits and pitfalls
They say families who play together stay together, but what about families who save together in a multi-generational self-managed super fund? According to the most recent ATO statistics for 2015-16, the vast majority of SMSFs (69.8%) have just two members, usually a wife and husband. A further 22.9% have one member. ... Read more
Find out about the new contribution rules that help bump up SMSF balances and reduce tax
New rules mean self-managed super fund (SMSF) members can make additional contributions to their SMSF, which can bump up their balance and at the same time offset their tax bill. There are two contribution strategies that could provide SMSF members with up to $50,000 in deductions against their income in a financial ... Read more
A simple guide to what tax is payable on super death benefits
When you die, the tax man can be pretty quick to put his hand out to take his cut, and this also applies to the balance of your super account. But working out just how much of your super death benefit will be paid to your nominated beneficiaries and how much will go to the ATO isn’t straightforward. ... Read more
Which asset classes are popular with SMSFs?
Of the many benefits of running your own SMSF, one of the major drawcards is the wider choice of investment strategies that can be established compared to a traditional super fund. Along with the safety of cash and term deposits, SMSFs can also directly invest in Australian and international shares, property trusts, ... Read more
SMSF investment rules: What every trustee should know
An SMSF is a very attractive superannuation savings vehicle but it also comes with plenty of responsibility for anyone that signs up to being a trustee. While most of the time people choose an SMSF because of the freedom of investment choice it provides, it’s important to understand the rules around what you can, and ... Read more
How to create an SMSF investment strategy (including examples)
Self-managed superannuation funds are required, under the Superannuation Industry (Supervision) Act 1993, “to formulate, review regularly and give effect to an investment strategy.” What is an SMSF investment strategy? That investment strategy needs to take into account the following things: The risk involved in ... Read more
Guide to SMSF trust deeds
An SMSF trust deed is a legal document that outlines how the fund will be set up and how it will operate. An Australian SMSF must be established with a trust deed that is compliant with Australian superannuation legislation. Why is an SMSF trust deed necessary? An SMSF must be set up as a trust. A trust is a type of ... Read more