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Self Managed Super Fund

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The Benefits of a Self Managed Super Fund

Financial Planning Expert can help you decide if a Self Managed Super Fund (SMSF)  is right for you and recommend a range of strategies to make the most of your opportunities. If you have any queries about setting a SMSF contact us or phone today on (03) 5974 4350.

Some of us prefer to manage our own superannuation and a SMSF can be beneficial for the following reasons.

1)      Give you more control over your money

An SMSF gives you direct control over how your retirement savings are invested. Because of this, you will generally have access to a much larger choice of investments than other super funds. Establishing an SMSF will allow you to invest in Australian and International shares, cash, residential property, property trusts, business real property, term deposits, managed funds, bonds, exchange traded funds (ETF’s), options, private trusts, insurance policies, notes and futures. Having access to such a wide range of investments can also result in increased diversification (and therefore less risk) compared to other super funds.

2)     Be more tax-efficient than other types of superannuation fund

The tax benefits of a SMSF cannot be ignored. Excluding SMSF’s, Australia’s superannuation system is already regarded as the most tax-efficient structure in which to build wealth. However, a SMSF builds on this by offering greater tax planning flexibility that is generally not achievable with other super funds. Implementing strategies to reduce the amount of tax paid in your SMSF can make a significant difference to fund performance. This is one reason why SMSF’s often outperform other super funds. Strategies to minimise capital gains tax (CGT) by timing the sale of fund assets and using imputation credits from Australian share dividends to offset earnings tax are two examples of how tax can be better managed by using a SMSF.

3)     Assist with estate planning

Some of us have a preference to keep assets in the family after we pass away. This is one of the more complex benefits of using an SMSF so we’ll use an example. Let’s assume you run your own business (as a company) and your SMSF owns the business premises. The SMSF leases the premises to your company and in return, your company pays rent to your SMSF. You’ve recently retired and your son, who recently separated from his wife, has taken over running the business, but your SMSF still owns the business premises and continues to lease it to the company.  Because your son now runs the business, when you pass away, you want the business premises to be transferred to him. You also want the business premises to be protected (e.g. in the event your son and his wife divorce, or the business becomes bankrupt and owes money to creditors). Additionally, you also want to minimise the tax implications for your son after the transfer has taken place. A SMSF, in conjunction with expert estate planning advice, can achieve the desired outcomes in this example. Complex estate planning requirements, such as those in this example, may not be achievable with other super funds.

We can help you decide if a SMSF is right for you and recommend a range of strategies to make the most of your opportunities. Contact Financial Planning Expert or phone (03) 5974 4350 if you have any questions about setting a SMSF.


This advice may not be suitable to you because it contains general advice that has not been tailored to your personal circumstances. Please seek personal financial and tax advice prior to acting on this information.Opinions constitute our judgement at the time of issue and are subject to change. Financial Planning Expert Pty Ltd does not give any warranty of accuracy, nor accept any responsibility for errors or omissions in this document.
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Phone: (03) 5974 4350

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  • About Financial Planning Expert

    Financial Planning Expert is an independent financial planning business based in Melbourne. We provide genuinely independent and conflict free financial advice. We’re experts in self-managed superannuation fund (SMSFs) advice and strategy, retirement planning, property and share investment advice, life and income protection insurance, tax planning, asset protection, estate planning and advice for Australian expatriates.