• October 6, 2021

3 Things You Should Know About a Self-managed Super Fund

Superannuation is as important as any other financial tool in your arsenal. It can even be considered the most important…

 3 Things You Should Know About a Self-managed Super Fund

Superannuation is as important as any other financial tool in your arsenal. It can even be considered the most important since it will be your ticket to financial freedom when you cannot continue in the workforce.

But then, all that is left is to find the best strategy for you, and a Self-managed Super fund could give you exactly what you need.

SMSF is a superannuation fund unlike any other because you will also take part in the running of the fund. Financial experts handle other funds, and members of those funds will only see their money being invested for them. On the other hand, an SMSF includes you in the decision-making process, making it a popular fund option. But what can you truly get out of it?

On this page, you will learn more about SMSFs and why you should contact a financial expert right away to help you get started on this type of superannuation fund.

Hands-on Investing

If you are actually a member of an SMSF, you will have the opportunity to be hands-on during the decision making. If you want to have a voice on where your money is going, this type of fund is the right one for you. From investment decisions to the actual investing of the funds collected in the SMSF, you will take part in all of it as a trustee.

However, you will also need to comply with all the requirements needed when managing a fund. You have to keep track of all of your records to show that you are a responsible member of the fund. You also need to provide financial statements as well as the tax return file for auditing purposes. You can always ask the help of a financial expert for this.

Tax Exemption or Relief

There are instances when your capital gains will be exempted from income tax. Since you will profit from the funds being invested through your SMSF, you will have to pay tax. But in SMSF, if certain conditions are met, you can be exempted and receive tax exemptions.

For instance, once you start paying your pension or your super income stream benefits, you can claim tax exemption. As long as all of your assets are revalued, you can get the tax exemption for your SMSF gains if you follow proper procedures.

Contribution Claims

Although it is a self-managed fund, there are strict rules you have to comply with to ensure that the fund is managed properly. One of the processes you have to be careful with is contribution claims. You need to know several things beforehand if you are planning on accepting contributions from the fund.

As long as you have your tax file number, the right type of contribution, and meet the age requirement, you can accept contributions. You may also accept it once your contribution exceeds the capped limit on a given period. However, if you are still quite confused, you should enlist the professional help of a financial expert to follow the process correctly.

Deciding on a superannuation fund can be a daunting task. But it does not have to be if you have a financial expert to help you. Ask for financial advice regarding Self-managed Super funds so you can get the benefits of this type of investment.

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