5 Most Important Benefits Of A Self Managed Super Fund

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5 Most Important Benefits Of A Self Managed
Super Fund
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About Us
SMART Financial Advisory takes pride in being a
financial planning firm that focuses on creating
a difference in the lives of their clients
through providing the highest standard of
service. We deliver tailored strategic solutions
across a broad range of financial planning
services that has been helping Australians
achieve their financial goals and freedom.
We are a corporate authorised representative of
InterPrac Financial Planning Pty Ltd and
specialise in Retirement Planning including
Investment, Superannuation, Personal Insurance,
Estate Planning, and Centrelink and Aged Care
advice.
We provide independent financial advice to ensure
that your current savings and funds are invested
effectively for you and your family. Our motto
is to help you PLAN, INVEST, ENJOY!
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1. Investment Choice
One of the key benefits of a SMSF is investment
control, and the wider investment choices such as
residential and commercial property,
collectibles, term deposits and direct shares
that SMSF members have compared to industry and
retail super funds. You will also have access to
derivatives to offer downside protection or
hedging your portfolio risk.
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2. An SMSF can borrow to invest in property
With the rules that allow SMSFs to borrow, SMSF
members can now purchase large single assets such
as commercial property that would otherwise be
outside of their reach. For example, a couple
with a combined SMSF balance of 200,000 can
borrow money via a limited recourse loan to
purchase an investment property worth 400,000.
Generally, a limited recourse loan can be secured
for up to 60-70 of the purchase price of a
property. This excludes other costs associated
with the purchase such as legal, stamp duty etc.
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3. Tax Minimization
Apart from defined benefit super funds (like a
government employee fund), most other
superannuation funds will offer the ability to
take a tax-free pension as an income stream upon
retirement.
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4. Tax Control
Through timing pensions and structuring as well
as tilting investment strategies to utilise the
concessional tax treatment for the funds, like
targeting franking credits, tax can be reduced
and for most retirement phase clients refunds
can be claimed from ATO for any excess credits.
There is also the flexibility when it comes to
dealing with taxable liabilities for your fund,
as this fund only has one single tax return
although there may be up to four different
members for the fund and each can have numerous
pension accounts. Where the fund has one or more
members who have retired and are therefore paying
0 tax, tax advantages can be achieved by
allocating earnings from members who are not
retired and are therefore sitting in a 15 tax
environment.
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5. Pay for your Life Insurance through your SMSF

• You are able to pay for your personal insurance
  cover through a SMSF. This includes
• Life Insurance
• Total and Permanent Disability (TPD) Insurance,
  and
• Income Protection insurance

You may have some insurance cover through your
current industry or retail fund. This cover is
referred to as group insurance and isnt
tailored towards your needs, plus it can be
reduced or cancelled by your super fund at any
time without your consent. If you apply for
personal insurance that is tailored to your
individual needs it is guaranteed renewable. A
guaranteed renewable policy is an insurance
policy feature that obligates the insurer to
continue coverage as long as premiums are paid on
the policy. Do you have any queries about
SMSFs? Do you require a proactive financial
advice? Feel free to contact our experts now!
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Contact Us
Smart Financial Advisory
Address Fiveways Business Centre, 7
Keysborough Close (First Floor), Keysborough,
VIC, 3173 Australia
Phone [phone]
Email clientservices_at_sfadvisory.com.au
Website www.sfadvisory.com.au
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