Self Managed Funds
Control - The fund assets are controlled by the Trustees who are also the members. The Members (acting as the trustees) make all decisions.
Family Fund - Up to four family members can join the fund.
Flexible Benefits in Retirement - A SMSF is the most flexible fund for taking benefits in retirement, whether the benefits are taken as lump sums, pensions or a combination of both.
Investment Choice - The Trustees have complete discretion when it comes to the choice of investment and generally have a wider selection than retail superannuation funds (e.g. direct property investment) or more limited (e.g. term deposits only)
Fees - The self-managed superannuation fund fee structure may provide substantial savings when compared with retail superannuation funds.
Flexibility - Trustees have the flexibility to make decisions with respect to changing market movements and options for retirement income streams.
Estate planning – the family and not some external trustee can make the decisions on the death of a member.
Self Managed Superannuation Funds
Disadvantages of a SMSF
Time Burden - There may be a burden on the time of Trustees to manage the fund investments and to keep records. However, this can be reduced by using a specialist administration service (such as us) and investment advisers.
Risk of Non-Compliance - Non-compliance by the fund could potentially cost a 45% tax penalty on the fund and the prosecution of the trustees. This risk can be mitigated by making sure you do not make any major decisions without the advice of your adviser and by being aware of the Musts and Must-Nots listed below.
Costs - Ongoing cost to operate the fund may be prohibitive for members with small balances.
Important: This is not advice. Clients should not act solely on the basis of the material contained in this information sheet. Items herein are general comments only and do not constitute or convey advice per se. Further changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas. The information sheet is issued as a helpful guide to clients and for their private information.
Risk of Non-Compliance - Non-compliance by the fund could potentially cost a 45% tax penalty on the fund and the prosecution of the trustees. This risk can be mitigated by making sure you do not make any major decisions without the advice of your adviser and by being aware of the Musts and Must-Nots listed below.
Costs - Ongoing cost to operate the fund may be prohibitive for members with small balances.
Important: This is not advice. Clients should not act solely on the basis of the material contained in this information sheet. Items herein are general comments only and do not constitute or convey advice per se. Further changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas. The information sheet is issued as a helpful guide to clients and for their private information.
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