SMSF has had a terrific run of late and things may only get better from here looking at the trend so far. This said, SMSFs also need to be wary of certain aspects and look diligently into others to make the most of the opportunity at hand. The same is just as true, if not more, for the SMSF practitioners.
For SMSFs, it is significant that all their transactions go through the bank account of the fund. There must be an investment strategy in place and it should be compliant with the ATO guidelines. With this is mind, any such strategy is to be declared beforehand.
If you have any doubt in mind that your employer is not paying the right amount of your Super or is not putting the amount in the fund allocated by you, try these methods out.
Self-managed Super funds have grabbed their day in the sun. With over $557 million in assets and over a million individuals expressing loyalty for the sector, it is only bound to grow from here on. The two things which SMSF has beautifully provided for are control and flexibility. SMSFs have attracted more than their fair share of criticism in the way, too.
If you have a million dollars lying in your Superannuation kitty, there is a good chance you have secured yourself a more-than-decent retirement. While this may not look easy to attain, it is very much possible. The clue lies in getting the basics of Super savings right.
The process of SMSF administration is fraught with traps, but at the very same time, they can also be greatly rewarding. If there is a need, it is to be mindful about the perils and rewards. When naming an SMSF, remember less is more. Rather than using terms like ‘executive’ and ‘family’, go for something pretty simple. Nothing quite like “Rayne Smith Super” should work best.
The Financial System Inquiry (FSI) Report has made a few recommendations and the SMSF industry, one can say with conviction, is not all too happy with them. If Campbell Report in 1981 deregulated the financial market and Wallis report led to the setting up of APRA and ASIC in 1997, the FSI Report about SMSF lending may have the industry rushing for cover.
Research throws up an interesting observation. As much as 84% of SMSF trustees do not have a life insurance cover and in numbers, they come up to about 630,000 couples. So there is definitely an opportunity waiting to be lapped up in the SMSF insurance world.