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Archive for self managed superannuation fund

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.*

Pitfalls For Setting up an SMSF

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.*

Every financial transaction or investment associated with the fund may have a fee or multiple fees. If you choose to invest your SMSF in rental property, for example, you will have to pay stamp tax duty, maintenance, property management and a host of other costs. Accurate assessment of costs for any investment is important.*

Underestimating the Time and Knowledge it Takes to Run an SMSF

According to the FPA, the most important facets are ongoing research or due diligence, investment management and tax returns. These must be done by you or you must hire a team to run your investments for you.

Call Approved Financial Planners Today

At Approved Financial Planners, we offer full self managed superannuation fund services. To learn more or for an obligation-free consult, call us today: 08 6462 0888.

*Financial Planning Association of Australia: “Common mistakes people make when setting up their SMSF’s.”
https://fpa.com.au/blog/common-mistakes-people-make-when-setting-up-their-smsf/

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.*

Right Choices As SMSF Trustee

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.

Other Questions:*

76%: Made at least one new investment with their SMSF in the previous twelve months.
35%: Made from 2-5 investment changes in the previous twelve months.
16%: Made between 6-10 changes in the previous twelve months.

Shift in Allocation of Assets:*

38%: Made what was termed a “substantial shift” in the allocation of their SMSF’s assets in the previous twelve months.
Of those 38%:*
24%: Became more defensive.
24% Became more diversified.
23% Changed due to optimism in Australian Shares Market.
22%: Tried to focus more on income.

Decision-Making:*

More than 50% created an SMSF because they wanted more control over their investments.
44%: Make all of the investment decisions on their own.
23%: Make decisions with one other person.
17%: Use a Financial Advisor for help.

Goals:*

41%: Long term goals.
39%: Funding additional personal goals.
37%: Meeting day to day living expenses.

Using a Financial Advisor

27% said they would consult a financial advisor if their SMSF wasn’t performing according to their needs. 48% said they would alter their investments on their own.*

Make the Right Choice

At Approved Financial Planners, we combine more than 40 years’ experience in the Perth market with the resources of our parent company, AMP Capital. To learn more or for a free consult, call us today: 08 6462 0888.

SMSF Trustee Source

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.

Take Control With A Self Managed Superannuation Fund

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.

Benefits of Self Managed Superannuation

Those who have enough time, money and access to sound financial advice will find that self managed superannuation provides a lot of benefits for our Perth clients.

You have more choices available because you can choose your own strategy for investment. You can also create a larger SMSF with family members or co-investors.

Call Approved Financial Planners Today

If you are interested in an SMSF, call us today. We can set your SMSF up for you and provide the expert advice you need. 08 6462 0888.

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.

Is Self Managed Superannuation Fund Right for You

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.

What We Do

At Approved Financial Planners, we can educate you fully on SMSFs and help you determine whether an SMSF is right for you. If so, we can proceed to recommending one or more of our preferred administrators to work with you. Then, we help you set up your SMSF, taking care of such details as applying for the trust deed and the other documentation that is required.

We will help you determine a strategy. If you want to apply for loans such as residential, commercial or margin loans, we can help with that, too. We monitor your investments closely and communicate with you, your lawyers and accountants to help ensure your future.

Call Approved Financial Planners Today

The only way to really know if self managed superannuation funds are right for you is to call our Perth office: 08 6462 0888.

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.*

Basics of 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.”*

Making Contributions

Your employer must base their contribution on your “ordinary time earnings,” which include all hours of work, over-award payments, allowances, commissions, bonuses and some paid leaves. You have the option of contributing extra to your super.*

You may do this by adding a lump sum into your account from your savings. You can also transfer funds from another super fund into your current one. You may also ask your employer to deduct a certain amount from your pay and contribute it into your super for you.*

Where Your Super Money Goes

The money goes from your super fund account into a super fund that invests your money to make money. Different super funds have different dynamics. Some are linked to the market, which makes them move up and down as the market goes. Some are more stable.*

Call 08 6462 0888 to learn more.

*ASIC, MoneySmart, “How Super Works.”