Is a self-managed super fund right for you?

Advantages 

 

Control

  • Determine the investment strategy that meets your personal financial goals
  • Decide how you wish member benefits and member death benefits be paid.

Flexibility

  • Choose your own investments (eg property, direct shares, managed funds)
  • Access a range of insurance policies and insurance providers
  • Transfer assets into the fund, if you wish.

Tax benefits

  • Benefit from imputation credits from franked dividends
  • Gain valuable tax concessions, pre-and post-retirement
  • Respond promptly to legislative changes
  • Your contributions may be taxed at concessional rates
  • 0% income and capital gains tax for pension funds (up to generous government limits).

Cost

  • Fixed costs don’t increase as your fund grows
  • Manage your fees by careful management of investments.

 

Disadvantages 

 

Responsibilities

  • Operating rules and regulations need to be understood
  • Legislative changes require constant attention
  • You must ensure the fund remains compliant to avoid penalties.

Administration

  • Records must be kept scrupulously
  • Reporting has set requirements
  • You must understand your tax lodgement obligations
  • Are you prepared to be ‘hands-on’?
  • Do you have time to devote to your fund?
  • Do you have the professional skills and technical knowledge to manage the fund?

Cost

  • The fund needs a sufficient balance to be cost-effective (generally over $300,000)
  • Insurance premiums can be higher than ‘large fund’ policies.

If you’re not sure where that leaves you, let’s sit down and discuss the pros and cons as they apply to your journey.

 

The information on this webpage contains general advice and is provided by Hood Sweeney Pty Ltd AFSL No. 485569 (Hood Sweeney Accounting & Business Advisory). You can contact us on: T 1300 764 200, F (08) 8232 1968, E info@hoodsweeney.com.au, Address: 11-16 South Terrace Adelaide SA 5000, Postal address: PO Box 10516 Adelaide BC SA 5000. That advice has been prepared without taking your personal objectives, financial situation or needs into account. Before acting on this general advice, you should consider the appropriateness of it having regard to your personal objectives, financial situation and needs. You should obtain and read the Product Disclosure Statement (PDS) before making any decision to acquire any financial product referred to on this webpage. Hood Sweeney does not receive any remuneration or commissions for providing the general advice set out on this webpage. Hood Sweeney (including any of its related body corporates) does not have any associations or relationships with the issuers of any of the financial products discussed on this webpage.