Bloomfield and Associates are registered tax agents – and therefore we cannot provide financial advice. We do however work with some fantastic colleagues who are financial planners.
We employ experienced staff who are well versed in handling complex Self Managed Super Funds – and we invest much into keeping up to date with the new tax legislation as it changes.
So therefore our few words on this blazing trail of SMSF’s is more about just what one is, why you would have one and just how we fit into that.
If you think its something worthwhile investigating then I would firmly suggest your first phone call is to a registered financial planner who can provide advice appropriate to your circumstances so you can work out if its for you.
So lets examine just what a Self Managed Superannuation Fund Truly is …
The simple explanation is that a self managed Superannuation Fund (SMSF for short) is pretty much a do it yourself Superannuation Fund. Done correctly you can ask your employer to pay your SGC Superannuation monies (presently 9.5% of your gross wage each week) into this fund instead one of the big public ones like Tasplan, HESTA, AMP and so forth.
You can even transfer monies you have with other superannuation funds into your own SMSF – although some funds have blocks on this so you would need to check.
Business people who don’t have a wage and therefore no 9.5% SGC Superannuation can also put money into them.
In fact there are a lot of different ways you can get money into a SMSF – but you would need to discuss the details with a financial planner to ensure its within your best interest.
The reason people love a do it yourself superannuation fund is that YOU get to control and choose just what you get to invest in.
The thing is about a self managed superannuation fund is that there are lots of RULES – that govern a great deal about how you conduct the financial side of things, including just what you choose to invest in and even what you do with those investments once you have paid for them.
Whilst we do not police the following of rules, we work closely with your financial planner of choice to ensure you have the best outcomes for your choices.
You see an SMSF works best if you work with the accountant and financial planner as a team. No big egos, just yourself, my firm and a financial planner to guide the ship as it were.
So just why would anyone bother with having their own SMSF?
From my experiences with clients to date I don’t think there is a single reason. Some people appear to love having investment control of what they perceive their hard earned money and the freedom to invest in things they understand such as rental portfolios.
Others choose this road as a gut reaction to what they perceive as poor investment choices of their previous Superannuation Provider.
But really SMSF’s are a tax product like anything else – but these ones need a lot more care spent with them. It’s not a set up and forget choice to make, you need to stay involved and alert. There are a lot of rules and overall they do COST to run.
In fact the expense of setting one up and then running it is a factor that a lot of people I think overlook. You are paying for each year – a tax agent (the book keeping is specialised and normally only performed by an accounting firm as most book keepers don’t own a copy of the BGL software), an auditor and a financial planner. And this doesn’t change year in year out if you are attentive to the rules.
Setting up and running may well set you back at least $2500 – and ongoing may be similar. So you need to know its worth it.
As part of a dynamic team our firm is happy to work and contribute to a strong degree thus ensuring your SMSF performs the best it can.