Looking to set up an SMSF? Here’s what you need to know

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A Self-Managed Super Fund (SMSF) allows you total control over your retirement savings. For many Australians who want to grow their wealth, it’s a preferred and beneficial alternative to traditional super funds. However, it’s important to understand an SMSF brings with it a level of complexity, risk and responsibility. 

Before setting up your SMSF, take the time to fully understand what is involved and required of you ongoing. Here are answers to some of the most commonly asked questions regarding an SMSF set up. 

What is an SMSF?

A self-managed super fund is a private super fund that puts you in control. It allows you to play an active role in building your wealth for retirement by choosing where to invest every dollar you’d normally put into a retail or industry super fund. 

What are the benefits of an SMSF?

Starting an SMSF gives you total control and flexibility over where and how you invest your superannuation, with the sole objective of building your wealth for retirement. In comparison to your current (or a traditional) super fund, you may find an SMSF gives you:

  • Access to more investment options 
  • Greater control of your assets and investment decisions 
  • More flexibility in building a retirement portfolio
  • Ability to pool your super balance with members of your family 
  • Some tax benefits 

Are there any risks in managing a SMSF?

Like any financial strategy, there are pros and cons when it comes to self-managed super funds, so you will need to do your due diligence before diving in. For instance;

  • Managing an SMSF can be complicated and time-consuming
  • There are serious penalties for SMSF non-compliance 
  • It may impact insurance policies you have existing through your retail super fund

Who can support me in setting up and managing my SMSF?

To mitigate the risks, and leverage the benefits of an SMSF, it’s a good idea to have a team of experts in your corner, whom you can call on for support. This may include a specialist in SMSF Establishment and Entity Registrations, to ensure everything is set up correctly, an SMSF Accountant to ensure your fund’s ongoing compliance and a Financial Advisor to guide your investment strategy. 

Of course, finding these experts and coordinating communication between them can be tricky (not to mention time-consuming) to navigate. That’s why engaging a firm like Hallmark Consulting may be the best option for you. Our team will work with you one-on-one to streamline and support your SMSF journey.

“We think of ourselves as financial matchmakers,” says Daran Thomson, Managing Director of Hallmark Consulting. “We’ll guide you through the process, connect you with the right experts at the right time, coordinate communications between those experts, clarify answers to your questions and even help with the paperwork!” 

Keen to explore if a Self-Managed Super Fund is right for you? Give the Hallmark Consulting team a call today on 1300 135 295 for a no-obligation chat.