Financial PlannersSuperannuation Fund Pitfalls For Setting up an SMSF

Setting up an SMSF? Watch Out for These Pitfalls.

A lot of Australians are opting out of their employer’s superannuation funds and setting up self managed superannuation funds (SMSF’s). At Approved Financial Planners, we have helped numerous people in the Perth area with their SMSF’s.

According to the Financial Planning Association (FPA), though, some costly mistakes are common among those establishing SMSF’s. Here are a few of them.

Letting Your Money Sit

Some Australians who opt for SMSF’s put their money into them but just let it sit as cash. The FPA stresses the importance of those who establish an SMSF having a plan and a strategy for how their funds are going to be invested.*

Inaccurate Assessment of Costs

It can cost a lot of money initially to set up an SMSF. Then there are ongoing costs, such as investment fees, legal advice and ongoing accounting. If there is a corporate trustee, it will cost money to maintain the trustee structure.*

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Financial PlannersNewsSuperannuation Fund Right Choices As SMSF Trustee

Making the Right Choices as an SMSF Trustee

With over 40 years combined experience in the financial services industry, we have been providing advice on self managed superannuation funds (SMSF’s) to Perth area investors since self management of superannuation funds became an option in late 1999.

Recently, our parent company, AMP Capital, conducted research on what SMSF trustees considered to be the most difficult part of managing an SMSF. The research was conducted by Investment Trends.*

Poll Results:*

Most Difficult Task:*

27%: Investment selection.
24%: Keeping track of SMSF rule and regulation changes.
23%: Administration and paperwork.
19%: Finding enough time to conduct investment research.

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NewsSuperannuation Fund Take Control With A Self Managed Superannuation Fund

Is it Time to Take Control with a Self Managed Superannuation Fund?

The self managed superannuation fund (SMSF) is a way that people in Perth and beyond can save for retirement. When employers make contributions into your super, you can choose to have them put it in their corporate fund, an industry fund, a retail fund or an SMSF. There are many factors to consider, such as risk, reward, fees and insurance.

Remember that this information is general in nature. We can’t really make any specific recommendations without an individual consult to fully understand your financial situation first. We would like to give you an overview of SMSFs to help you decide if you would like to know more about them.

Factors to Consider

An SMSF isn’t for everyone. There are some factors you need to consider. According to the Australian Taxation Office (ATO), you may need as much as $200,000 to set up a viable SMSF. In addition, you will need to be a trustee. That involves a lot of time and responsibility.

You will need to submit reports on deadline, constantly monitor your investment strategy, keep abreast of all changes in SMSF regulations and keep a keen eye on the market for investment opportunities. You will also need to choose someone such as Approved Financial Planners to set up your SMSF.

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Financial PlannersNewsSuperannuation Fund Is Self Managed Superannuation Fund Right for You

Is a Self Managed Superannuation Fund (SMSF) Right for You?

A self managed superannuation fund (SMSF) is great for some people, but inappropriate for others. Our financial advisors have over 40 years combined experience in the Perth area. One of the things we have learned at Approved Financial Planners is that no person’s financial situation is the same as another’s. Consequently, you will need an individual consult before you know whether an SMSF is right for you.

Advantages of SMSF

An SMSF allows you to exercise greater control over your financial future. You decide where your investment money goes. You are free to choose an aggressive strategy if you want, dependent on how averse or open you are to risk.

Since an SMSF is usually obtained by paying fixed fees while industry and retail super funds receive a percentage of the funds you invest, those who have more money in their funds may pay a lower percentage for administration costs.

An SMSF provides you with greater levels of transparency, control and flexibility. Also, changes in laws governing SMSFs now allow them to borrow money. This allows you to invest in assets such as rental properties and other, more diverse assets.

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NewsSuperannuation Fund Basics of Superannuation

The Basics of Superannuation

At Approved Financial Planners, we provide superannuation and self managed superannuation advice to our clients in the Perth area. We would like to present a short beginner’s guide to understanding superannuation. We have gone to the Government’s website, https://www.moneysmart.gov.au/superannuation-and-retirement/how-super-works, to gather some basic information that you may find helpful in understanding superannuation.*

What is Superannuation?

Superannuation is a process in which your employer currently pays 9.5% of your salary into a fund earmarked for your retirement. By 2025, this contribution would have increased to 12%. You are allowed to pay your own money into your super fund account to increase the fund. Money gained from super fund investments is usually taxed at a lower rate than the same investments made outside of your super.*

Choosing a Super Fund

Your money is usually invested into a super fund of your choosing. However, some employers decide where your funds will be invested. If you want to decide where your super fund will be invested, you must fill out a form from the Australian Taxation Office (ATO). It is called a “Standard Choice Form.”*

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