Tag Archive for: Superannuation

SMSF Investments

Recently I’ve had a number of clients enquire about the pros and cons of setting up a Self-Managed Super Fund (SMSF). They have an instinct to get more control over their investments in Super. But they’re hesitant about the additional work involved in running a SMSF and are unsure of the costs.

There’s no perfect answer to the question, assuming one has sufficient funds to make it cost-effective. Anecdotally, I have seen a broad range of SMSF outcomes.

Some are pretty dysfunctional. Large long-term cash allocations, a jumble of different assets cobbled together over time, or speculative investment properties in far flung mining towns that are well underwater.

Conversely, some are fantastic. Low relative administration costs, a thoughtful spread of investments, and a clear strategy that is able to differentiate from the increasingly herd-like solutions being offered by the big retail and industry super funds.

Three reflections I have from seeing successful SMSFs in the wild:

1. Have a plan:

Running a SMSF well requires careful planning and a clear investment strategy. This is the cost of admission to the wide-world outside the walls of the retail/industry superfunds. A clear plan is crucial for SMSF trustees to help with consistent, long-term decisions, particularly in difficult investment markets.

2. Utilise the flexibility:

The main structural benefit of a SMSF is that it opens up the potential range of investment options available to you. SMSF trustees are able to invest in a much wider range of listed investments, real property, and alternative assets. This is increasingly attractive to many in a landscape of low yields and volatile equity markets.

3. Collaborate:

Finding the right professional team to help manage the administration and strategy of the SMSF can make all the difference between building a sustainable fund, and getting burnt out by the increased complexity. While some trustees are die-hard DIY’ers with a focus on reducing fees at all cost, most will benefit from working with a professional team of accountants and advisers.

SMSFs can be a great structure for investors wanting to get more control over their retirement savings. The added responsibility of running a SMSF can be challenging, but it can also serve as a good reminder that our retirement savings are real-life investments, and we will buy our groceries from their returns at some point (if we aren’t already).

Need some help?

PJ Cameron - Financial Adviser Launceston Tasmania
Peter-James (PJ) Cameron
Financial Adviser

PJ provides proactive, strategic advice to help you invest with confidence, structure your affairs intelligently, and get the most out of your unique circumstances.

Based in Launceston, PJ provides financial advice across the whole of Tasmania. Contact us today to arrange a meeting.

Contact us

Peter-James Cameron is a Sub-authorised Representative (#1266801 ) of Synectic Wealth Pty Ltd (ABN 24 615 317 194) which is a Corporate Authorised Representative (#1250871) of Alliance Wealth Pty Ltd (ABN 93 161 647 007 | AFSL 449221) www.centrepointalliance.com.au. Synectic Wealth Pty Ltd is the financial services division of Synectic. Learn more here.

This information has been provided as general advice. We have not considered your financial circumstances, needs or objectives. You should consider the appropriateness of the advice. You should obtain and consider the relevant Product Disclosure Statement (PDS) and seek the assistance of an authorised financial adviser before making any decision regarding any products or strategies mentioned in this communication.

February 2019 Newsletter

This month we have some simple tips to get the cash flowing in your business, and an update regarding Single Touch Payroll. Vaughn shares his thoughts on Artifical Intelligence and how it might impact our personal lives, and we ask you to think about where your superannuation death benefits will go when you pass away (it’s probably not your favourite topic, but it might be simpler to deal with than you think).

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Are you in control of who receives your super when you die?

It’s easy to assume that your Will would take care of your superannuation death benefit when you die. But that’s not the case – your super is dealt with separately from your Will.

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December 2018 Newsletter

In our last newsletter for the year, we offer simple ways to get your bookkeeping on track (with some great ideas for your New Year’s resolutions!), and discuss the risks of switching or consolidating super funds on your own. Danny shares his thoughts on the significance of your business’ purpose, and we check in on what #teamsynectic are up to in our community.

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Switching or consolidating super funds can be risky business

Super fund members are regularly encouraged to consolidate their super accounts into one account to reduce paperwork and avoid paying multiple administrative fees and charges for accounts they don’t need.

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Six tips for SMSFs investing in property

As a Self-managed Super Fund (SMSF) trustee you might, at some stage, want to invest in property as part of your fund’s investment strategy.

Before you do, you should fully consider the risks associated with property investment. Holding a “real property investment” can affect other aspects of your fund, such as benefit payments, and any investment must comply with superannuation laws.

Here are 6 issues to consider before your SMSF makes a property investment:

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October 2018 Newsletter

In this month’s newsletter we share the first in a series of highlights from our team’s attendance at Xerocon2018. Always an exciting conference for industry innovation, this year gave us some particularly thought-provoking takeaways. We also discuss an interesting strategy for business owners who have an SMSF. And we dig into how one organisation is adapting to the NDIS.

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Transferring Business Property into Your Self-Managed Super Fund

If you are a business owner with a self-managed super fund (SMSF) there are plenty of reasons why you might consider transferring your business property into your SMSF.

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June 2018 Newsletter

In this newsletter we want to make sure employers are ready for Single Touch Payroll (STP) and that small businesses are ready for EOFY.  We discuss some great tax planning opportunities for primary producers and outline developments in personal superannuation. Plus, check out what #teamsynectic have been up to lately.

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Personal superannuation changes you need to know about

Let’s talk about superannuation – it’s one of our favourite topics!

Okay, you might not get as excited about superannuation as we do. But there are a number of recent changes to the tax treatment of super that we think you should be aware of.

To help you get the most out of your retirement savings and avoid any unexpected pitfalls, we’ve outlined some of the major developments here.

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