Creating a new self-managed superannuation fund (SMSF)
A self-managed superannuation fund (SMSF) is a fund where the members are the trustees of the fund. That is, the members actively manage the operation and the investments of the fund.
The advantages of an SMSF are:
An SMSF may allow greater control of your retirement savings. It opens up wealth creation opportunities that aren’t available to members of industry or retail superannuation funds, expanding the strategies you can use and the assets you can invest in. For example, an SMSF can directly purchase a property and if it is commercial property it can be rented to a related party.
An SMSF allows flexible superannuation arrangements where a range of investments are able to be made. An SMSF can have members in retirement phase and in accumulation phase. It allows a family of up to four people to come together to pool their superannuation balances for investment purposes based on their preferences. The members can directly make investments based on current market conditions.
SMSFs may offer a cost-effective alternative to industry or retail superannuation funds. The greater the value of the fund, the greater the potential savings.
Estate planning considerations
An SMSF may allow for greater estate planning strategies to be put in place compared to larger industry type funds. The fund and its investments may also be able to continue for your spouse or your children in the event of your death.
Get the guidance you need
An SMSF can be a lot of work to set up initially and then to manage on an ongoing basis. It’s also critical that your fund complies with the many rules that apply to superannuation in general, and SMSFs in particular.
The good news is that it is easy to enjoy the benefits of an SMSF without the hard work.
Our team of professionals possess the full range of expertise required to ensure the success of your SMSF.
In setting up your SMSF we guide you through every step, including:
- Advising on the choice between individual trustees or a corporate trustee
- Creation of the trust and the trust deed
- Applying for a Tax File Number (TFN) and Australian Business Number (ABN)
- Ensuring a relevant investment strategy is prepared in accordance with the member’s needs
- Assistance with the opening of the SMSF’s bank account
- Facilitating the rollover of benefits from your current super funds.
If not set up correctly, an SMSF runs the risk of being a ‘non-complying’ fund.
The penalties for this can be severe, ranging from large fines to loss of tax concessions, so it’s essential that everything is done ‘by the book’.
Talk to the SMSF experts
With more than 20 years’ experience in self-managed super, LDB has helped hundreds of people take control of their retirement savings by creating their own SMSFs.
To find out more about SMSFs and what they entail, give us a call on (03) 9875 2900 or fill in the contact form below.
A quick chat with one of our superannuation specialists will help you decide if an SMSF is right for you. If not, we can offer other solutions to support your retirement savings goals.
But if there are real benefits to be gained by establishing your own SMSF, let’s get started.
The sooner we do, the sooner you will be reaping the rewards of taking control of your retirement savings.
LDB Wealth Solutions Pty Ltd is an Authorised Representative (no. 257930) of LDB Financial Group Pty Ltd ABN 83 161 933 777
Australian Financial Services Licensee: Licence Number 437164
LDB Superannuation Services Pty Ltd is an Authorised Representative (no: 1253818) of LDB Financial Group Pty Ltd ABN 83 161 933 777