SMSF (Self-Managed Super Fund)

There is a lot of concern over performance (or lack thereof) of superannuation funds. People are finding they are not in control of their finances because they are relying on the share market. For many clients who come to us, that lack of control doesn’t sit well. At all.

In the main, these are people who have worked hard for their money and who want their money to continue to work for them. These people don’t like not having control over their own money.

A well-established business had a property ownership entity. That entity had borrowed money to buy a commercial property within which they work their business. That premise was now too small, and they needed an expanded premise. They had good equity in their existing premises, but they need to move up into a higher gear.

The principals of the business have cash sitting in their SMSF. So, the super fund was able to buy their new commercial premises. The business itself, entered into a rental contract with their self-managed super fund.

The business then sold their existing premise and use the equity from that sale to inject into the expansion of the business.

Generally, SMSF members pay lower fees and enjoy better performance than all other super funds.

Depending on your individual situation, the advantages of an SMSF may include:

• greater flexibility in investment choices and asset selection
• control over your total investment portfolio, with the ability to take account of the risk profile of all your assets
• maximum flexibility in establishing and managing pensions, including retirement and term allocated pensions
• greater flexibility for accessing Centrelink benefits such as the age pension
• tailored tax management
• investing indirect property
• the ability to transfer personally owned listed shares, business real property and managed funds directly into your superannuation fund, and
• the ability to own business property