Controlling Your Retirement Savings
Our team of highly trained and specialist tax advisors are passionate about helping you devise solutions to achieve financial freedom. A self-managed superannuation fund will put you in control of your investment decisions in a highly regulated environment. At TSP Accountants we provide a complete range of services to assist you in administering your SMSF and ensure compliance with regulations.
Our staff will assist you:
- Establishment of a compliant fund
- Meet annual accounting and taxation compliance
- Advice on tax effective strategies for your fund
- Pension establishment
- Assistance with the acquisitions of investments in the fund
- Assistance with contribution levels and limits
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Frequently Asked Questions About Self Managed Superannuation Funds
Below we attempt to answer some of our most popular questions regarding SMSF’s and super annuation in general. If you have a question for the TSP team relating to this topic, send us a message in the above contact form.
What are the pros and cons of SMSF?
Self-managed superannuation funds (SMSFs) are a choice that Australians who want more control over their retirement savings are choosing more frequently. With an SMSF, people can choose how their money is managed and invest in a variety of assets, such as shares in companies, managed funds, and real estate. However, SMSFs have certain disadvantages, so people should carefully weigh the benefits and drawbacks before choosing if an SMSF is good for them.
Self-Managed Superannuation Funds’ Benefits
- Greater Control: Giving people more control over their retirement assets is one of the key advantages of an SMSF. Members of SMSFs have more investment options than in typical superannuation funds, where investment choices are determined by qualified fund managers. freedom: SMSFs provide a lot of freedom when it comes to investment options. Members of an SMSF can invest in a variety of assets, such as stocks, managed funds, and real estate. As a result, people are able to customise their investing plan to meet their unique needs and objectives and may even generate larger returns than they would with a conventional superannuation fund.
- Tax Benefits: SMSFs provide a variety of tax advantages, including the capacity to write off costs like accountancy and legal bills. Furthermore, SMSFs are eligible for a number of tax breaks, including the ability to balance capital gains with capital losses. SMSFs have a number of drawbacks.
- Cost: Setting up and maintaining SMSFs can be expensive. A lot of expenses are associated with establishing an SMSF, including legal and accounting fees as well as ongoing administrative expenses like annual audits. Additionally, SMSF investing fees may be greater than those of conventional superannuation funds, which might reduce investment returns.
Members of an SMSF are in charge of managing their retirement savings and choosing their investments. Some people may find this to be a frightening duty, especially those who have little investment experience. A member of an SMSF may also jeopardise their retirement funds if they choose unwise investments.
Self-managed superannuation funds have a variety of advantages, such as more control, flexibility, and tax advantages. They do, however, have some disadvantages, such as fees, significant stamp duties, and sometimes challenging regulatory requirements. Before considering if an SMSF is the best option for their retirement, people should carefully weigh the benefits and drawbacks of SMSF’s and whether they have the time and resources to maintain these funds themselves.
Getting expert guidance from a financial advisor or accountant can help people decide if an SMSF is the appropriate choice for them. At TSP we specialise in Self Funded Superannuation Funds and can assist you determine the correct choice for your current situation. Book in with us for a consultation here
Can I buy 2 properties with SMSF?
Yes, you can use your Self Managed Superannuation Fund (SMSF) to purchase two properties in Australia, provided that your fund’s trust deed allows for property investment, and the investment is consistent with the fund’s investment strategy.
However, there are some rules and regulations that you need to be aware of when using your SMSF to purchase property. For example, the properties must meet the “sole purpose test,” which means that the properties must be used solely for investment purposes and not for personal use by the SMSF members or their relatives. Additionally, the properties must be acquired at market value and must be leased or rented out at market rates.
It’s also worth noting that borrowing to invest in property through an SMSF is allowed, but it is subject to strict rules and restrictions, such as the requirement for the property to be held under a limited recourse borrowing arrangement (LRBA).
Therefore, before using your SMSF to invest in property, it is essential to seek professional advice from a licensed financial advisor or accountant who is experienced in SMSF investments to ensure that you comply with all the rules and regulations.