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Self Managed Superannuation Funds

Self managed superannuation funds are a percentage of your income, and or voluntary contributions that are intended to be used when you reach the required age for retirement. You generally are automatically receiving funds into one if you are an employee and are required by law to utilise one. Given it is a requirement you have, why not make sure it is how you want it.

Super funds typically are automatically invested in an industry specific fund, however once a threshold of roughly $200,000 in your fund is reached it becomes possible to customise where it goes with a valid return rate. This $200,000 threshold isn't an exact required amount, though is the common recommendation of a fund to cover the costs of maintaining the fund and have efficient growth. This can be a cumulative amount between more than one person in the collective superannuation funds. You may wish to group your funds as such with friends and family who have similar values or alike.

So what can you do with a self managed superannuation fund? You can control investments and make use of your knowledge, utilise funds for alignment of future investments in related investments to your dreams and goals and ensure your ethical standards are met with investments. Some people wish to invest in clean energy, others varied future technology such as robotics and unique property materials, you may even wish to consider the environmental impacts of where the money is invested and support particular groups or avoid others. The freedom, within justifiably profitable investments, is yours to consider and ensure your future as well as that of others is brighter for it.

If you are considering a self managed superannuation fund then a question does arise with two options. To set up as an individual structure or a corporate trustee structure.

Individual structures offer a generally cheaper cost to register though can become time consuming and expensive if trustees change or leave the fund. Individual trustee structures also mean that each individual trustee can be liable for fines and penalties from the ATO for compliance breaches.

In contrast corporate trustees ensure ownership documents do not have to change when members join or leave your fund making it easier to manage changes that result from death, divorce or disability. A corporate structure will also ensure assets held in individual names are not intermingled with fund assets.

Depending on the diversity of interests in the fund and how it is made up both can offer different strengths. If you have any questions about self managed superannuation funds, feel free to contact us for a chat.

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