Did you know: Setting up an SMSF doesn’t have to be hard!
How many times have you thought about setting up an SMSF but decided against it because it all seems too hard?
Believe us, we’ve heard that before. That’s why we thought we’d shed some light on the subject! Did you know you can invest in all types of established property (including residential, commercial, and industrial property) through your SMSF?
It could mean the difference between a great retirement and constant worry.
This week we thought we’d break apart the “too hard” myth and showcase some of the reasons an investor should consider establishing an SMSF.
What is a Self-Managed Super Fund?
A self-managed super fund (SMSF) is a trust structure used to manage retirement savings on behalf of its members.
SMSFs have one goal: providing financial benefits to its members in retirement.
Plus, the benefits can pass on to beneficiaries upon death.
Who can have an SMSF?
If you contribute to super and can be a trustee, then you can have an SMSF. If you have the right advisors with you, like Scott Partners, they can be suitable for almost anyone. They are most appropriate for those wanting direct control over their investments, an ability to diversify their portfolio (including property), and with over $200,000 in existing super.
Want to buy property with your SMSF?
This could be a great idea, but before you rush out scouring the Real Estate section of your local newspaper, you need to comply with several rules.
To purchase with your SMSF, the property must:
- Meet the ‘sole purpose test’ (solely providing retirement benefits to fund members)
- Not be acquired from a related party of a member
- Not be lived in by a fund member (or related parties)
- Not be rented by a fund member (or related parties)
You need to think of purchasing property through your SMSF as a long-term asset designed to benefit you from now into retirement.
Should I consider an SMSF?
Here at Scott Partners, we say yes!
There are several advantages to SMSF’s:
- You have control over your investment.
- You may pay little or no capital gains tax if you own & sell the property over the age of 60.
- The tax benefits connected with super can improve personal tax returns.
- You can own your business premises through your SMSF (assisting with cash flow and funding).
The key to making a successful SMSF investment strategy is educating yourself and using an SMSF professional advisor and financial planner, like the team at Scott Partners.
Don’t risk thousands by incorrectly establishing your SMSF. Call us today and ask how we can help you understand your responsibilities as a trustee, the costs involved and how you’re going to invest.
Please note this is general advice only. For your specific circumstances we urge you to talk with us.
