Thinking about self-managed super

There’s been much buzz around self-managed super funds, but what are they all about? Many people are weighing up their options and now more than ever are considering taking control of the biggest asset they have (besides their home).

Here we discover the key factors that are making self-managed super fund so attractive.

Reduce Your Super Fees

When it comes down to it, nobody likes paying for anything when they don’t have to. Many corporate, industry or retail super funds charge their fees based on how much you have in your superannuation fund and are calculated as a percentage, not a flat fee. Therefore, as your super grows, you’ll be charged more!

An SMSF does away with all of the percentage calculations and allows you to pay a flat fee, which doesn’t increase as your fund gets bigger. So when you add it up, think of the money that you could save with a self-managed superannuation fund on fees alone.

Maximise Your Returns

Aside from the money you’ll be saving on fees a SMSF will allow you to maximise your returns by splitting up where you invest your money. You can invest in shares, managed funds, residential properties, cash and fixed interest in whichever proportions you think are appropriate for you. By having this control, when a market dips you can act upon this by shifting your assets elsewhere.

With a company, industry or retail run super fund, you are exposed to their particular strategy which limits your opportunity for returns.

Reducing Your Tax with Salary Sacrifice

Salary sacrifice is simply an agreement you make with your employer to pay part of your pre-tax income into your self-managed superannuation fund.

  • The raw dollar advantage in choosing to salary sacrifice is that the contributions put into your SMSF are not taxed in your name but your SMSF at 15%.
  • So, if your personal tax rate is more than 15%, there is a tax benefit in salary sacrificing. If you sit at the top tax rate of 46.50% you can save up to 31.50% on each dollar you salary sacrifice into your SMSF.

By doing this, you can add thousands of dollars in tax benefits annually. Click here !

Claiming Benefits – Claim Co-Contribution

The Australian government has set up a scheme which matches dollar for dollar the additional contributions one makes to their superannuation. Although the government’s contributions are capped at a certain amount, there is still great opportunity to add to your SMSF balance. Many reputable companies who assist with setting up a self-managed superannuation fund will have all the relevant paper work for you to apply for this scheme.

Finally, be advised that you cannot access SMSF money for purposes other than your retirement needs. SMSF funds are bound by the sole purpose test, which says that superannuation investments are meant only to provide retirement benefits for the trustee(s).


While it is our duty to secure our financial future through prudence and alertness, it pays to remember the other durable values of life. As the great philosopher Bertrand Russell said, “The most valuable things in life are not measured in monetary terms. The really important things are not houses and lands, stocks and bonds, automobiles and real state, but friendships, trust, confidence, empathy, mercy, love and faith.”

This explains why the reason why the government gives a tax break for the income from self-managed super. Visit this site for more information :

"Thinking about self-managed super"

Benefits of Borrowing for SMSF Property Investment

If you meet the strict rules in a Self-managed superannuation fund context, you have to come to a decision whether or not owning property is the right choice for you – whether or not property is the exceptional possible next step to your SMSF portfolio. click here for more details.

Below are some points to consider:

  • Does property symbolize the correct level of danger publicity, given your present cash flows’ specifications and diversification preferences?
  • Do you take into account whether resources will be available in case there will be a need for improvements that the property has to require, given that borrowed cash can only be utilized for repairs?
  • Are you conscious that you simply cannot live in or hire the property yourself (or any of your ‘associated parties’), except you buy a business property and use a certain trust to employ a property to your own business?
  • By this, are you ready to keep that property for one complete cycle of 7 to 10 years, in case the market will enters to a downturn upon buying is done? These are just a few advantages central to buying property utilizing borrowed SMSF money. for more details, visit :

Benefits of Borrowing for SMSF Property Investment

Here are the top points of the what would be the benefits of borrowing for an SMSF property investment:


  1. It could be a tax-effective. As the favored car for retirement financial savings, the superannuation will receives a tax therapy. Then the earnings within the superannuation fund will be taxed at simplest 15% – that is lower than the half of its marginal taxation rate paid through nearly all of staff – and the earnings inside the pension section are tax free.
  2. It supplies you with buying vigor. Your financial savings for the external superannuation environment – and or even your character savings inside superannuation – may not be sufficient to spend money on direct asset. Combining with your capital within its opposite individuals on your self-managed super, thus, it may just provide you the buying vigor you have to make investments.
  3. Business advantages. Whilst you cannot buy a residential property to appoint back to yourself, or to any associated party of an SMSF member, you may purchase a certain commercial property to rent again to your own trade – considering that you pay a commercial cost of rent.
  4. It supplies you to manipulate over your investments. Many investors could relish having a control over its investments they purchase and the ability to “add price” to their investments through renovation or development (please notice as a part difficulty that the ATO does no longer allow SMSF trustees fund renovation or development through borrowings).
  5. Before retirement, capital features and hire earned by means of your Self-managed super fund are taxed at most effective 15 per cent (for those who hold the property for more than a 12 months, this drops to 10 per cent on capital positive factors).
  6. Direct control of your tremendous investments and an actual working out of the place your cash is invested.
  7. Diversification within your portfolio.

Ultimately: there are various small details to be conscious of with regards on investing to an SMSF.…

"Benefits of Borrowing for SMSF Property Investment"

SMSF Investment Strategy #1 – Buy Safely and Profit From Your Mistakes

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It supplies for sure a drawback defense and pays a good revenue when the stock bounces back again ultimately. Knowing about set options earlier than however, in reality it used to be normally too low cost to purchase choices since the price appears expensive. It would be most likely don’t forget making use of this technique any time you buy basically just right stocks that we plan to be able to preserve for the extended period. In fact you already put this technique into better practice and purchased some dons on our XLF shares in case in general the market takes a different drop. $2250 for three months of coverage insurance policy within the XLF illustration over. Considering the fact that the announcing goes — “penny clever, pound silly”. After having to reside through the nightmare of a fifty three% paper loss when XLF fell by way of $13 to $6, this specified coverage now seems similar to a small rate to pay to limit my deficits to lower than 20%.

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SMSF Investment Strategy #1 - Buy Safely and Profit From Your Mistakes

At that factor, if you make a decision you do not need to maintain XLF anymore, you will have exercised my choices and sold your stock for $13 and walked away making use of a tiny loss. In the month of March, when the alternative put up expired, the fee of XLF was $8 for each and in every share. If you feel that the XLF fee will definitely get better, you would offer your best options which regularly could be worth $5000 at this stage ($thirteen-$8 = $5 x 1000) and used this “”coverage payout”” to purchase extra XLF on the decreased cost of $eight each and every share. You could have bought yet another 400 shares for $3200 and have ample cash left over to be ready to buy 14 contracts of Jun09 8 put possible choices to look after my 1400 shares. Through June 2009, the cost of XLF had already long gone again once more as much as $12. 55 per share. If you bought all 1400 shares simplest at that rate, I’d get $17, 500. After deducting the rate of the place choices and commissions, we nonetheless would have a web profit of $2000 which is a 16% profit over my customary rate of $13, 000 with regard to a thousand shares. As a new buyer, you maintain a best discussion to investor.

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"SMSF Investment Strategy #1 – Buy Safely and Profit From Your Mistakes"

SMSF – Why So Popular?

The facts that are catching the attention of more and more individuals regarding self-managed super funds(SMSFs)  are as follows:

Investment control: The Trustees of an SMSFs –Many individuals prefer their own funding investments together with shares, residential and business property, farms, and other investments.There are limitations under the superannuation legal guidelines of how these belongings can be utilized (together with use by means of contributors) and who they can be received from. Thus,in case they could meet the fund’s on investment method, they will have to be suitable investments. click here for more about SMSF.


Family members super funds: SMSF is considered as a true inter-generational asset accumulation and also a wealth transfer car. There is no any legal period limit as to how long an SMSF can go. Therefore, lots of customers build it for when their children grow up -the benefits go well beyond the grave.


There would be an Australia’s most effective tax haven: The simplified super annuation offered by means of the previous government provides tax-free lump sums and pensions payable from a self-managed super annuation to members over the age 60. This is a large improvement for investors for the duration of their retirement when compared with all different forms of investment structures together with the loved ones trust, family organization or investing on my own or in a partnership. The other comparative exemption are the capital features tax exemption on a investor’s primary home or the sale of a business asset that meets the small business capital positive aspects tax exemptions. for further related info, click on  :

SMSF - Why So Popular


Social protection benefits: the place a member is over age pension age (sixty five years for a male and 64.5 years for females) belongings of their SMSF member account are verified for belongings experiment and the income scan. The place a pair’s mixed belongings together with superannuation is lower than $1,092,000 for a house owner then a component cost pension is payable. For incomes test purposes, pension income much less the tax free share is classified. The tax-free factor isn’t decided by way of whether the pension revenue from the fund is tax-free within the member’s fingers; however, the component of the pension that relates to non-deductible contributions, such as the CGT exempt component and other capital type accessories.


The best Self-managed superannuation fund estate planning: The ATO has recently recounted that a member’s superannuation benefits can’t be taken care of by way of a member’s will. It is the trust deed of the fund that have got to provide rules as to how the trustee of the fund is to pay out a deceased member’s advantages to their dependents or legal estate. Importantly,going from a tax method perspective, there will be no tax regarding lump sum payments to dependents of members who pass away. A dependent involves a partner, a youngster under the age of 18, someone in an inter-dependent relationship (reside together and furnish mutual help) or an individual who’s financially sound upon the deceased member.  If the deceased member is over age 60 and receiving a tax-free pension income then this sales may continue to be paid tax free to the member’s dependents – apart from any fiscal dependent who’s a child and is over the age of 25.


"SMSF – Why So Popular?"