The SMSF game is hotting up and we aren’t complaining any, are we? Members acting as trustees and completely controlling their superannuation fund was a far-fetched idea in the past but GFC has changed all this. Today, about 40% of the Super money is parked in SMSF.
Myths need to be debunked, whether they are about an urban legend or the self-managed super fund. There is a lot of noise around how SMSF is only good if you have about $200,000 in your kitty. Let us find out if there is truth to this claim.
Self-managed Super fund or SMSF is a form of Superannuation wherein the member is himself the trustee and the one who manages the fund on his own. This gives great control and flexibility over the investment. With SMSF, you can choose to diversify your fund’s asset in any way you deem fit.
The Australian government believes there are at least 3.4 million lost Super accounts and the funds add up to a herculean $16.8 billion. What are the consequences of a lost Super and how can one deal with it?
If you have roughly $200,000 in your superannuation kitty and you can tackle additional costs approximately $1,500 to $2,000 yearly, there is every reason why you should go for a self-managed super fund. Learn the benefits of setting up a SMSF.
Should you own your life insurance inside or outside your Super? It is such a crux question — one that gives sleepless nights to SMSF members. There is something beautiful to say about both the worlds. Of course, the first thing before you make your decision is to comprehend your ownership structure. What endorsements and exclusions do you want in your cover? What kind of marginal tax rates will apply? Who your beneficiaries are going to be? These are just some of the questions you need to answer to be able to help you make a firm decision.
Law firms working in the SMSF industry have cited key compliance issues, failing which can levy strict penalties on SMSF members. 1 July and beyond are not going to be as easy days to wade through as have been the days before 30 June. Learn more about the compliance guidelines change that will be implemented after 1 July.
Young people are not saving enough to retire free of stress. What’s worse is that they cannot figure this fact out. Retirees have a forlorn look when they talk to the Gen Y, simply because they know their voice is reaching the younger guys out there, but their thoughts are not.