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Your Money. Your Future.

Discover How To Secure Property & Invest In Shares Through Your Super

Take control of your super and chart the best course for your retirement with a self-managed super fund

Do you feel like your super is not doing enough for you? Are you worried that the super fund that manages your retirement money isn’t going to be able to provide the income and lifestyle in retirement as it should? If this sounds like you, then self-managed funds are a great option. Unlike standard funds, these give more control over where and how you invest your superannuation. With a SMSF, there is greater investment management, greater risk management and so much more!

Need clear, simple advice to help you take control of your retirement?

We are your team of trusted Self-Managed Super Fund specialists

At Forward360, our goal is to support and educate you through the lifecycle of your fund to maximise the benefits. After all, isn’t that the point of having an SMSF? Our team of SMSF specialists are here to help you understand your options and will provide you with the right advice and investment strategies to maximise your return on investment.

The Dangers of DIY SMSF

You may have seen advertised online cheap DIY self-managed super fund setup offers. However, these DIY SMSFs can be fraught with danger, here’s why.

Here at Forward360, our SMSF advisors help clients navigate through the complex world of managing a self-managed super fund. The trust deed and the advice you will receive from Forward360 will allow the fund to stay compliant and actionable.

We take care to ensure your fund stays compliant whilst helping you generate and protect your wealth.

Take control of your super and chart the best course for your retirement with a SMSF

8 Reasons Why You Should Set-up a Self-managed Super Fund

SMSFs offer many benefits including flexibility and control over the investment strategy, tax advantages and costs savings.

Take full control of your super

With a self-managed super fund, you don’t have to rely on fund managers to invest your retirement savings. Instead, you have the freedom to invest in assets that you know and understand best.

Unlock more estate planning opportunities

Your super benefits aren’t part of your will. A self-managed super fund can be set-up to execute your wishes regarding benefits payout to future generations.

Save thousands on ongoing fees each and every year

Redirect thousands of dollars back into your super fund by eliminating unnecessary administration, trustee, fund manager, and adviser fees that are charged based on the value of your super. Secure a flat fee that isn’t dependant on your super’s value.

Eliminate super taxes and increase your return

With just a few clever investment strategies, you could significantly reduce or eliminate contributions, investment income, and capital gains taxes within an SMSF. This means you’ll have more money working for you and compounding over time.

Eliminate super taxes and increase your return

With just a few clever investment strategies, you could significantly reduce or eliminate contributions, investment income, and capital gains taxes within an SMSF. This means you’ll have more money working for you and compounding over time.

Create a family wealth accumulation vehicle

SMSFs let you group your super together with family members. Since there are no life limits applied to SMSFs like there are with other trusts, you can build-up assets in a tax-effective and asset-protected environment to support future generations.

You don’t have to manage your super, as the name suggests

You don’t have to be an expert to unlock the power and benefits in a self-managed super. With Forward360, you can outsource everything from tax returns, financial accounts, and compliance through investments and strategic advice.

Multiply your returns by borrowing money to invest in property through your super

With a self-managed super fund, you can borrow money to buy residential and commercial property. Our SMSF specialists can advise you what is needed to get started. A lender will provide you with the shortfall, resulting in a higher asset value. With a much higher investable amount, a self-managed super fund has the potential to multiply investment returns.

FAQs

In the right situation, SMSFs can be very lucrative. However, it’s important to understand the risks before establishing a fund. Generally speaking, SMSFs are beneficial to those with a large super balance (over $200,000), investing and legal experience, and enough time to manage a fund.

Self Managed Super Funds are just that; self-managed. Therefore, you need to have the time and expertise to do just that. If you lack either, a SMSF can be detrimental to your financial future.

For an SMSF to be worthwhile, the general consensus is that you need to have accumulated at least $250,000 of superannuation. However, a report from The Productivity Commission found that on average, SMSFs with balances below $500,000 have lower returns after expenses and tax compared to APRA-regulated funds (a standard superannuation fund). This being said, there are times when starting balance, under $500,000 may be financially beneficial and that a starting balance of $500,000 may not be helpful. It depends on your circumstances, experience, and investment goals.

 

To find out if you have enough money to establish an SMSF, arrange a complimentary meeting with one of our SMSF specialists at Forward360.

Many DIY SMSF do not have compliant trust deeds and may expose you to high penalties from the ATO. Your trust deed is your rule book and needs to be broad and legal. This provides for flexibility within your deed which allows for more strategic actions such as income streams and estate planning.

One of the main attractions of setting up an SMSF is to use your superannuation to purchase property. The incentive here is that you are only taxed 15%, which can be substantially lower than your personal tax rates.

 

However, you can only purchase property through a SMSF, if you follow the rules.

 

Any property you invest in must:

 

  • Pass the ‘sole purpose test’; whereby it is purchased only to offer members retirement benefits
  • Not be purchased by any relations of a fund member
  • Not be occupied by a fund member or fund member relations
  • Not be rented by a fund member or any fund member relations

It’s tempting to withdraw money from a SMSF, and you can; however, you should be aware of the penalties first. SMSF can pay benefits by means of an income stream, lump-sum figure or a combination of both, but if you withdraw money from your super fund without following the rules and regulations, you may face heavy penalties.

 

The ATO states, “As a trustee, if you knowingly allow illegal access to super you may incur penalties of up to $504,000 and jail terms of up to five years, or fines of up to $2.52 million for corporate trustees.”

 

Less-severe penalties include higher taxes or disqualification from being able to operate as a trustee of an SMSF.

 

It’s always best to talk to your SMSF specialist before withdrawing money from your super fund.

SMSF withdrawals can be either a lump-sum payment or a pension, where you receive periodic payments. To receive pension payments, you must first reach the preservation age, which varies depending on your date of birth. Pension payments can be either Account-Based Pension or Transition to Retirement (TTR). You can receive TTR payments as soon as you reach the preservation age, however, to receive Account-Based Pension payments, you need to be over 65 or retired, and have reached the preservation age.

 

To receive a lump-sum payment, you must meet the condition of release specified by your fund. Be mindful though; there are tax consequences of taking $200,000 or more as a lump-sum payment.

 

It’s best to talk to a Forward360 SMSF specialist to see which option is best for you.

Once you are fully retired, you can possibly live in your SMSF property if you are structured properly. You cannot, however, live in the property until you retire or reach the preservation age. And there are more conditions and aspects to think about.

 

For more information on SMSFs, visit the Australian Taxation Office (ATO) website.

In the right situation, SMSFs can be very lucrative. However, it’s important to understand the risks before establishing a fund. Generally speaking, SMSFs are beneficial to those with a large super balance (over $200,000), investing and legal experience, and enough time to manage a fund.

Self Managed Super Funds are just that; self-managed. Therefore, you need to have the time and expertise to do just that. If you lack either, a SMSF can be detrimental to your financial future.
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Need a Trusted SMSF Specialist?
Call us on 1300 84 54 54 today or request a call back for clear, simple advice to help you take control of your retirement