Understanding Your SMSF

understanding SMSF

Managing one’s Super account is possible through a Self-Managed Super Fund or SMSF. Since managing SMSF is not taught in schools, there is a lot of confusion about what one can do or cannot do with their Super account. To save time and get expert advice, an SMSF accountant in Perth should be on your go-to list.

What Can I do with my SMSF?

Accumulate Wealth

One of the main goals of SMSF is to accumulate wealth for you, primarily for your retirement. When accumulating wealth through SMSF, the following activities are involved:

  •  Contribute to your Super

You can do this either by directly contributing or through your employer. It is also possible to roll over existing super balances from other funds.

  •  Pool balances

For married couples, it is possible to pool balances for Super to avoid multiple fees.

  • Invest locally or internationally

With money in your Super, you can invest in shares in Australia or overseas, on managed funds, commercial or residential property, or term deposits and cash.

  • Pay your insurance

You can pay your insurance, including Income Protection, Life Insurance, and Trauma Insurance, through your SMSF.

  • Borrow to buy a property

Buying a property is now allowed through SMSF; however, the policies are strict, but going for a consultation is highly recommended as the policies are strict. Read more about SMSFs and Property.

  • Pay your Pension

You can start to withdraw your super savings as an income stream to supplement your living expenses once you retire and reach your preservation age. 

Also Read: Can You Withdraw Money From Self-Managed Super Fund?

  • Take Lump Sums

Ready to take that big holiday? You can take lump sums from your retirement fund, no problem!

  •  Tax-free Income

Enjoy all your earnings now tax-free with Super. This includes income from pension and earnings from the investments within the SMSF.

  • Direct where the money goes after death

Not a popular topic for some, but SMSF allows you to specify where the money will go after you have passed on. Once the nomination is binding to the trustee, your will must be followed.

Related: Can You Use Self-managed Super Fund To Purchase Business?

Save for your Retirement Funds

Your Super is dedicated to your retirement. Once you reach your retirement age, you can use your SMSF to:

Get Expert Help for your SMSF

When working on your SMSF, it is best to consult with experts who can help you make the best decisions for your money. Should the rules change over time, you can be at ease knowing that you are backed by experts, including insurance specialists, stockbrokers, and financial planners.

Contact us today if you are interested and would like to know more about the SMSF.   

Disclaimer:

This article is not financial product advice. It is for informational purposes only. It is designed to demonstrate the benefits of

a SMSF and does not take in account your individual objectives or financial situation. The information in the article is believed to be true and accurate

however Griffiths Advisory accepts no liability of any kind for any reliance placed on the information contained within the article.

None of the information should be taken as a recommendation, you are acting independently at your own risk. 

Phil Griffiths

Phil Griffiths

Bachelor of Commerce
Certified Practising Accountant
Diploma in Financial Planning
Professional Certificate in SMSF
Approved SMSF Auditor

Phil has been managing director of Griffiths Advisory since it began 29 years ago. With a wealth of experience in taxation, business advisory, superannuation, negative gearing, and wealth creation.

Phil enjoys a healthy active lifestyle which includes surfing, cycling and snowboarding, as well as spending quality time with his wife and two children.

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