The use of a self-managed super fund or SMSF is not a new phenomenon.
With over half a million of these accounts in existence across Australia, retirees have decided that generic superannuation accounts with increasing fees do little to protect their long-term interests.
The important takeaway from this development though is not to attempt the venture alone.
When local clients connect with SMSF administration services, they get ahead of the game.
Starting The Fund
The very first advantage of hiring these services to oversee such a project is having them on hand to make the super fund official. With the right amount of members involved (maximum of four), the representative from the firm can set out the designated roles and responsibilities so participants are not flying blind. This will include the Trust Deed, the Trustee Declaration and an official registration via the Australian Business Register. Once those steps have been taken, clients are able to delve into the detail with their professional.
Managing Tax & Audit Responsibilities
According to the Australian Tax Office (ATO), the official tax rate for a self-managed super fund stands at 15%. Such a figure is dependent on the fund being compliant in the first place though, a provision that is best managed when SMSF administration services are involved in the process. While fund participants might believe that they can handle this matter with their accountant, any audit process would benefit from a representative overseeing the portfolio. These are strict obligations that require an eye for detail, something that is not always evident for retirees who just want to enjoy their flexible investment arrangement.
100% Client Control
One of the main benefits of why individuals and groups opt for this model over a standard super package is because they can take greater control of their retirement. By leveraging SMSF administration services, retirees have the chance to see what is really possible rather than accepting conventional norms and expectations. This control will pertain to property rights, shares, interest rate provisions, the acquisition of commodities and assets and other types of portfolios that are accessible. Without that third party intervention, it can be a challenge to see what choices are available.
Removing Investment Risks
One of the dangers that citizens face when going on this journey alone is that they can make some ill-fated investment decisions that impact on their bottom line. While they look appealing on the surface, they could bring down the value of the entire package. By hiring SMSF administration services and having an expert team of operators overseeing an account, they will prevent any of those actions from taking place.
Combining Resources Under One Portfolio
For those groups who are pooling their resources together for the self-managed super fund, they will find the aid of SMSF administration services incredibly beneficial. It can be a tricky exercise to follow through with these documents and application forms, being worn down by the logistics and the time required for the task. Hiring a specialist who knows the industry is a step in the right direction, combining up to four members who collectively share the same vision for the future.
Planning The Estate
A small detail that is often overlooked with these types of funds is the ability to make binding death benefit nominations. These provisions do not lapse over time, giving peace of mind for participants who want to specify precisely where their death benefits will be paid. By consulting with expert SMSF administration services, individuals will have estate planning perfected without being hamstrung by outdated superannuation parameters.
Clients who become a trustee through SMSF administration services have greater peace of mind and confidence in the process. To avoid all of that unwanted stress, pressure and confusion that can arrive with these funds, identify a firm that has the reputation and resources to make this investment a central retirement asset.