North Coast Accounting

Business & Tax Advisor, SMSF Auditor

North Coast Accounting

Set up SMSF

 

What is SMSF?

Self-managed super funds (SMSFs) can be an attractive choice for retirement planning for some investors, as it offers a certain level of control, transparency and flexibility. The difference between the SMSF and other types of funds is that the members of the SMSF are usually also the trustees. This means the members of the SMSF run it for their own benefit and are responsible for complying with the super and tax laws.

Why set up SMSF?

  • Control & flexibility - Having your own SMSF lets you control the investments, let the Fund buy a commercial property & lease to your business (your business has to pay market based rent) , buy shares and other investments traded on stock exchange through your broker, invest directly in specific shares/ managed funds of your own choice etc.
  • Insurance & risk management - SMSF can offer life and TPD insurance to its members which meets the needs and requirements for managing the risk of the members.
  • Manage costs & grow fund - Generally speaking, larger the fund balance, the higher the fund cost as their administrative costs are fixed in terms of percent of member balance. SMSF does involve preparation of accounts, the audit, compliance and tax return costs. However, it pays to compare the costs and make an informed decision as you'll have fund balance for good 20 to 30 years.
  • Pooling of resources - SMSF allows up to four members join the fund, generally family members. All four family members are able to pool their savings into a single SMSF and are able see the opportunity to not only cut down costs but also otherwise think about an investment or two which otherwise may be difficult individually.
  • Putting your experience to practice - SMSF involves time commitment ranging from managing papers, compliance, choosing right investment & monitoring performance, keeping abreast of Superannuation changes having impact on your Fund etc. If you have the right aptitude and experience, why not put to practice and see how it is all coming together?

How to set it up?

You'll need to find SMSF expert to help you with the initial set up which involves consideration of a number of issues. The set up requires creation of a trust deed, appointing trustees, securing registration with the ATO, set up a bank account for your fund, roll over your super, set up an investment strategy etc. Speak to us if you are thinking of having the SMSF to organise a meeting with a financial planner who would give an independent and unbiased advice.

Once, the financial planner has comfortably advised that the SMSF is the right strategy for you, we can organize setting up SMSF , get a separate TFN, ABN and other required registrations from the ATO.

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