appropriate, let's first dispel a few
myths about when a SMSF is needed.
·Onecommonmisconception
want to invest in direct shares.
While this may have been true
at one stage, most of the better
public-offer funds, and even
some of the industry funds,
provide the opportunity to
include direct equities in your
superannuation asset mix.
have tailored insurance solutions
through your super. Again, these
days most of the better super
funds allow members to apply for
their own chosen levels of death,
total and permanent disablement,
and income-protection cover.
reason often quoted. As a great
many super funds now allow
nominations, while this may have
been an advantage of SMSFs in
the past, it is no longer the case.
With the costs associated with
the bulk of superannuation
vehicles being driven down, largely
through competition, and the
compliance costs associated with
SMSFs (such as annual financial
statements and tax returns, an
annual audit certificate and annual
supervisory levy), quite often a
SMSF is actually more expensive
than a good public-offer fund.
returns. Unless you intend to
limit the investment universe
of your super to direct property,
cash and direct Australian shares,
you are almost forced to utilise
the products of professional
investment managers. This being
so, any thoughts pertaining to
would be seen as foolhardy.
have a SMSF, who would want to
establish one? The answer is relatively
simple you need a SMSF if you wish
to do any or all of the following:
someone else, such as your spouse or
children (up to four members).
Note that acquisition of assets from
fund members is limited to `listed
securities' or `business real property'.
superannuation. Note that strict rules
apply to how and for what purpose
such borrowings may be made.
superannuation, any other reason for
the creation of a Self Managed Super
Fund is, quite simply, not a reason.
Education Partner Network.
For more information on this or other wealth management matters contact
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