Managing a Self Managed Superannuation Fund
With much freedom comes much responsibility
Like other superannuation funds, self-managed super funds (SMSFs) are a way of saving for your retirement in a tax effective manner. The key difference between an SMSF and other types of super funds is generally, that members of an SMSFare the Trustees of the fund and run it for their own benefit, and have responsibility for ensuring that it complies with the SIS Act. and its Regulations.
With a SMSF you decide how to invest and thus have a wider choice of investments than standard off the rack funds. A SMSF can invest in a broader selection of investments including property and, if you are self employed, small business assets.
- A SMSF can have a maximum of four fund members and can include family members, giving the fund more super to invest. Assets held inside an SMSF are usually shielded from bankruptcy but are the property of the fund and not available for members personal use
- SMSF's aren't for everyone and you should think carefully before deciding to set one up. It's a major financial decision and you need to have the time and skills to do it. Either way you should certainly get professional advice.
Investing in Property through a SMSF
For SMSF’s that choose in invest in property as part of their considered investment strategy, banks and other mortgage providers will require a Certificate of Financial Advice along with funder specific additional requirements and documentation.
This can be a difficult document to obtain as it requires a licenced and experienced professional with an unusual broad skill set and understanding of your funds investment plan, trustee deed and member’s needs.
At Sapience, we are Authorised Credit Representatives and understand non-recourse mortgage lending, are licenced Financial Advisers & Planners (Authorised Representatives of an AFSL) and hold a higher level of expertise with regards to SMSF investments. This breath of expertise means we can comfortably work with SMSF Trustees to help them comply with different sections of the SIS Act and we can provide Certificates of Financial Advice.
If you are a SMSF Trustee and need assistance meeting your member insurance responsibilities, whether you need a Certificate of Financial Advice, or want to update your documented investment plan, we can help you.
Get in touch with Sapience today. Simply leave your details and request a call back.