We are accredited with SPAA (Self Managed Superannuation Fund Professionals Association of Australia), the peak professional body for accountants, financial planners, and lawyers who offer specialised services and advice in this complex area of investing.
Anthony Stedman and Stephen Blackhall hold SMSF Specialist Advisor™ financial planner accreditation.
We constantly come across clients who have been talked into setting up an SMSF arrangement. And more often than not, for completely the wrong reasons.
While the technicalities of an SMSF are quite complex, there are a few simple, common sense rules that should always govern your decisions.
Do you have a minimum of $200,000?
While your super balance is one factor when considering using this method for managing your retirement funds, a 2019 Productivity Commission investigation found SMSFs with less than $500,000 performed “significantly worse” on average than regular funds. The same year, ASIC released an information sheet that said the average SMSF needs $13,900 and 100 hours a year to run.
Don’t hold all your eggs in one basket…
While this seems sensible, we are continuously meeting clients who have set up an SMSF arrangement to hold a property. We are extremely concerned about this if the only asset you own in the SMSF is property. Particularly if you have had to borrow funds to complete the purchase.
We often meet clients who have been sold the idea of a self-managed superannuation fund by “advisors” who are spruiking property ownership in superannuation. Particularly those who want to sell you a property that is still in the construction phase. On the surface, this may seem attractive. Stamp duty savings, etc. However, we strongly recommend that a client seek the services of a suitably qualified financial planner who specialises in self-managed super fund advice prior to committing to a purchase such as this.
Whilst Anthony Stedman and Stephen Blackhall are accredited SMSF specialist financial planners, the SMSF association website is a great starting point to find someone local who is accredited. Another great way to find someone to assist is to speak to friends who may have already found an accredited planner that they are comfortable with.
My friends have a Gold Coast apartment in their SMSF which they use during the school holidays…
There is one really simple rule that will answer a lot of your potential questions…
If you use or enjoy an asset in superannuation before you have retired, then it is in all likelihood against the law.
Self Managed Superannuation Funds are really complex…
Whilst it is true that Self Managed Superannuation Fund rules are complex, a SPAA accredited financial planner is professionally trained and qualified to assist you in getting the most out of your Self superannuation fund.
I note in 2019, ASIC released an information sheet that said the average SMSF needs $13,900 and 100 hours a year to run.
Understanding what you are doing makes all the difference and superannuation can become an engaging experience.
We have prepared a set of Pros and Cons that may help in gaining a better understanding of whether SMSF is right for you. Click here for a summary of the pros and cons of Self Managed Superannuation.
Why not take the next step and talk to a qualified financial planner?
LifeTime Financial Group are specialist (holding appropriate accreditations) advisors who are ideally positioned to assist you with your SMSF requirements.
If you would like to discuss your wider financial planning needs, why not call us today on 03 9596-7733? There is no cost or obligation for our initial conversation/meeting.
Alternatively, please make an appointment using our online Book an appointment (Blue button above)
LifeTime Financial Group. A leading privately-owned Melbourne-based Financial Planning practice with no ties to any financial institution.