What is a Self Managed Super Fund or Do It yourself Super fund?
A self managed super fund ( SMSF ) or do it yourself super fund ( DIY ) as they are sometimes known is simply a superannuation fund that is controlled and operated by members of the fund who are also required to be trustees.
A SMSF or DIY fund has less than five members and where each member is also a trustee. This means that the members are not only responsible for making all the investment and operational decisions for the fund but they are also ultimately responsible for ensuring the fund is run and maintained in accordance with a range of strict legal and regulatory requirements.
Why set up a SMSF or DIY fund?
Most investors set them up because they want to have a greater say and control on how their hard earned savings are invested and in what it is invested in order to feel more confidence that they are headed towards achieving their retirement goals. Other reasons include saving fees/cost savings, greater tax effectiveness, greater choice of underlying assets/investments, greater control of estate assets and pooling of family super monies to purchase larger assets (like direct property).
What can a SMSF or DIY Fund invest in?
The main types of assets held by a SMSF or DIY fund are;
- Listed Shares - 31%
- Cash (including term deposits) - 24%
- Public Trusts - 11%
- Direct residential, commercial, industrial property - 10%
- Other Trusts - 10%
- Other managed Investments - 7%
- Loans, unlisted shares, art works & other - 4%
How can Navigate Wealth financial advisers & planners help me?
We are financial advisers with expert knowledge on self managed super funds and DIY funds. Our services and advice includes
- advising on the appropriateness of setting up a smsf
- how to properly establish a smsf (different structures for different purposes)
- the implementation and ongoing review and management of industry best investment strategies
- investment of the funds assets in accordance with the Superannuation investment rules
- advising trustees of their duties and responsibilities and assisting trustees to administer their fund in accordance with the prescribed superannuation operation standards
- assisting trustees to commence and pay income streams to fund members during both the pre-retirement and retirement phases of their life
- assisting trustees to pay death benefits following the death of a member (family wealth estate management & control)
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If investing in direct property to take advantage of capital gains concessions (GCT free) and income tax free rent in retirement we can help you get clarity on how much different properties will cost, how to use a SMSF property loan to purchase the property, and expected future benefits based on different types of properties (residential, units, houses, townhouses, commercial, industrial, medical practices etc). If you need assistance in finding a good property, we can help via our sister company Navigate Property Buyer's agents.
For further information on the advantages and disadvantages of having a self managed super fund or DIY fund contact our office for a complimentary no obligation consultation to determine how it may benefit you for your current and future generations.
Ph 1300 505 565
Level 12, 61-63 Market Street Sydney CBD NSW 2000
Financial planners and advisers to doctors - dentists - medical specialists - senior executives - family businesses - busy professionals