Is an SMSF right for you? 5 key questions

Everyone wants more from their super. But did you know, that super isn’t really an investment per se? Rather it’s just a tax structure. What it really comes down to is this;

Would you rather be paying up to 45% in tax on your earnings (if you’re on the top tax rate) or 0%?

Yep, thought so!

So now you’re really wondering if a self managed super fund or SMSF is right for you.

The ATO have provided the outline for four key questions that could help you decide. You might also want to check out our other SMSF FAQs as well.

Is the fund strictly for retirement benefits only?

If your answer is no – you might want to talk to us about other tax effectiveness strategies. The assets contained in your fund are very strictly for retirement only. They can’t help you run a business or provide any benefit outside the fund until you retire.

Do you have the time and skills (or an advisor to help you)?

You must be the trustee of your own fund. So even if you get help from an advisor such as Mason Lloyd, you are still legally responsible for the fund’s structure, compliance, investment strategy and reporting requirements.

Will the benefits be worth the costs?

ASIC and the ATO suggest that you’ll need a minimum of $200,000 in super to make the costs of an SMSF worthwhile. We agree that unless you’re really keen to start earlier with the aim of a bigger impact at retirement, that you might wait until you’ve got a super balance of around $200,000. This is so you’re not out of pocket for the set up and running costs, which also include regular reporting and audit requirements.

How will switching to a self-managed fund affect your current super?

Changing funds could potentially mean changes in benefits, services and fees. Of course you’ll want to minimise the negative impact on your current super balance and that must be weighed against the potential benefits. You’ll also want to make sure that you’re not left without life and other insurances that you may have been paying for under your existing superannuation plans.

At Mason Lloyd, we can help you set up your SMSF, manage your reporting and audit requirements. However, we cannot advise you on which super fund best suits you or which investments should be in your fund. That should be undertaken by a licensed financial advisor, which also affords you a level of extra protection should anything go wrong in the future.

We’re happy to work with your preferred financial advisor if you already have one, but if not we can suggest several trusted advisors to work with.

Give Kerry a call today on 6023 1700 to discuss the possibilities for setting up your self managed super fund or get in touch via the form below.

Got a question? Get in touch

If you've got financial or business questions, or you just want to run something by us, we'd be delighted to really talk to you – in person, over the phone - call us on 02 6023 1700 - or you can use the form below and we'll get back to you.

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Mason Lloyd is licensed to provide superannuation advice only through SAN.

SMSF Adviser Network (SAN)’s details are as follows - website, AFSL number - 430062 & ABN 64 155 907 681. Mason Lloyd is the Corporate Authorised Representative and Kerry Lloyd is the Individual Authorised Representative (ARN - 00126027, ABN - 40 115 023 973). You can reach Kerry on 02 6023 1700 or via the form on this page.

About us:

Lloyd Accounting is a boutique accounting firm based in North Albury that operates with the sole purpose of making your tax and business affairs as easy as possible. For us, it's about really understanding what it is you're wanting to achieve and then using our experience and expertise to help facilitate that.

Please note - our new location:

Lloyd Accounting is now located at 932 Waugh Rd, North Albury, NSW.

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