SMSF Basics – What are the Good and Bad points of having a Self-Managed Super Fund (SMSF)?

What are the Good and Bad points of having a Self-Managed Super Fund

What are the Good and Bad points of having a Self-Managed Super Fund

Self Managed super funds (SMSF) have good and bad points like everything in life, and you need to consider carefully whether it is suitable for you, such as can you manage finances, have you the time – so let’s look at some major considerations –

1.  Some Pros of SMSF:

  • Control over investments they give you
  • Flexibility of investments
  • Choice of investment spread
  • Protection from bankruptcy and other legal claims
  • Low tax saving environment – 15% concessional tax (Nil in Pension mode)

       eg Dividend $100 Franked received

                                   (ie – $142 less 30% Co. Tax paid ($42)  leaves $100)  

       at tax time means – (some examples)

       Life Stage                  Outside SMSF (your Tax Rate)         Inside SMSF (15% tax)

       Tax Rate 45%           pay 15% tax $21 pay                            credit 15% $21 back

       Pension 0%              may affect aged pension, 0%             credit 30% $42 back, Tax 0%

2.  Some Cons of SMSF:

  • Responsibility – Penalties: 46.5% tax, fines
  • Administration involved
  • Your suitability to manage investments
  • Complaints – no access to Super Complaints Tribunal
  • Commitment and work involved
  • Hard if you do not seek assistance with investment knowledge and compliance responsibilities

Interested to know what self-managed super (SMSF) is all about, how to get setup FREE and if it is for you?

We have FREE seminars and bonuses every month – Self Managed Super Fund Roadmap (all you need to know) see 1 SMSF – FREE Seminars

 

 

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About SuperBenefitnews

Self-Managed Superannuation Service Providers in Australia. SuperBenefit provides a wholistic SMSF assistance, education and administration service continuum - 1. “assistance” is help of whatsoever nature where our overall SMSF experience and knowledge enables us to provide assistance/help without any legal (or “license”) limitations. 2. “education” involves providing knowledge through teaching, coaching and mentoring about all matters SMSF, including (but not limited to) investment issues such as equities and property, 3. “administration” encompasses all admin aspects of legally required SMSF trustee and member record keeping including (but not limited to) audit and ATO matters. In keeping with our key point that SuperBenefit does not provide Financial Advice, where issues arise from 1, 2, and/or 3 above Indicate a need for a legally authorized provider (such as a Financial Adviser) and the client does not have their own service provider, the client can utilize SuperBenefit’s ‘Connect Assist’ … SuperBenefit, in itself, does not provide Financial Advice, but it does provide the wherewithal for great SMSF service. WE do not provide Financial Advice or any other service that requires a legally authorized provider. However, where such advice or service is required we have our ‘Connect Assist’, a SuperBenefit resource we use to connect clients to a Licensed Advisor or other legally authorised service provider. Call us 0407 361 596, no obligation FREE Connection call to see how we can help you!
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