Since last year’s changes, our financial planners have received a lot of calls about how to make the most of a self-managed superannuation fund or SMSF and what new investment opportunities are available in Perth.
Superannuation benefits are scheduled to increase to 12% over the next few years. The preparations you make now are crucial, as they can affect your lifestyle during retirement. We recommend having a goal for your SMSF. After you have created your goal, the financial planners in our Perth office will be happy to help you find a way to fulfil that goal.
In the interim, here are a few tips to make your super the envy of your Perth neighbours.
Track Down Old Accounts
According to statistics, half of Australians will lose track of at least one account in their super sometime in their lives. Government statistics show approximately $16 billion in 3.4 million SMSFs have been lost by individual members. The magic of a super is in how much it can grow through compounding. Losing an account negates any benefits and can severely affect your retirement lifestyle.
This problem has become so acute that the Australian Taxation Office (ATO) has set up an online program called SuperSeeker which is free to use 24-7/365. Simply go to https://www.ato.gov.au and click the tab close to the top that says “Super Funds.”
If you want more money in your super, voluntary contributions are a great way to get it there. If you contribute $20 every fortnight for 30 years, it will provide as much as $30,000 in retirement funds.
SMSF: the Hottest Topic in Perth
SMSFs are the hottest topic in our office, but they have pros and cons like any investment strategy. You become the trustee of your super and have full control over how you invest it. An SMSF provides the greatest flexibility of any strategy—if you create an SMSF “pool” with other family members or business partners, you can often maximise your investment and reach your goals more quickly.
The downside is that the costs associated with a SMSF often negate the benefits unless you have over $200,000.
Consult the SMSF Experts
Purely Finance in Perth can handle all of your questions about whether a SMSF is appropriate for you. Call (08) 9472 9766 to learn more.