Self Managed Superannuation


If you don’t know where you are going, you could end up somewhere else.


If you get it wrong your SMSF becomes non-compliant, fines are excessive, but a non compliant fund due to inappropriate investments, borrowings or administration could lead to the total balance of a fund becoming declared as additional income to a trustee in one year and taxed at marginal rates.


At Cornerstone Financial Planning, we advise clients who want assistance to take the complexities out of their financial decisions and want to outlive their retirement funds.


The major attraction of a SMSF (self managed super fund) is that you become your own fund manager, making all the investment and administration decisions. This provides you with the freedom to design an investment strategy that is appropriate to your needs.  It can also be a daunting and expensive task, especially if you get it wrong.


You become the captain of your own ship, but you may prefer to be a fist class passenger instead


You can select from a very broad range of investment options including shares, property, cash, fixed interest investments as well as the full range of listed and managed investment products. Today, you can even borrow against your home from the bank and on-lend these funds as a related party lending with your superfund. Limited Recourse Loans can also be entered into to have the property held in a holding trust for the superfund until the debt is repaid.


More and more individuals are pooling their super with other family members and creating a SMSF, so that along with their financial planner can make all the investment decisions which provides them with the freedom to design an investment strategy that is appropriate to their needs.


SMSF trustees have a wide range of investment options, including direct shares and direct property. In some circumstances the fund can purchase assets from members of the fund, allowing better consolidation of investment assets. More flexible strategies are available within a SMSF to manage issues such as buying and selling shares than those which exists with retail super funds where you have no investor discretion.


For trustees of SMSFs, managing your own fund and getting it right is very important. There are many rules and regulations in the various laws that govern super that are designed to protect your retirement income. As a trustee, you need to adhere to the rules and know that you are ultimately responsible for the running of the fund, even if you use tax, financial and super professionals to help to manage it.


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