As a trustee of your own super fund, you’re held responsible for your investments and complying with superannuation and taxation laws. Please ensure you consider the risks before setting up an SMSF.Īlong with your superannuation, it may be a good idea to grow some of your investments outside of super. ![]() Keep in mind there are also strict laws and regulations that govern SMSFs. In addition to determining if you have sufficient capital for an SMSF to be worthwhile, consider whether you want the added responsibility, as managing your own retirement savings comes with costs of its own. What is a self-managed super fund?Ī self-managed super fund (SMSF) can have real pluses, allowing you to have more control over how your super is invested, within superannuation and taxation laws. Just be sure you have sufficient funds in place to secure your own lifestyle first before offering financial assistance. You may have plans to give your adult children or grandchildren a financial helping hand when you are retired. It is a good idea to speak to your financial adviser, who would be able to advise the best option for your circumstances and the economic climate. If you still have money owing on your home loan, you may be wondering whether it is better to use spare cash to pay down this debt or add the money to your super. You can explore these options with a financial adviser.Įxplore a transition to retirement pensionĪnother option to consider is using part of your super balance to purchase a transition to retirement pension. When combined with salary sacrifice super contributions, these pensions may help you put more money into your super without reducing your take-home pay. But it could pay to have part of your retirement savings, including super, invested in growth assets to generate long-term capital gains. Pre-retirees may be tempted to shift their super into low risk, conservative options. Now may also be the time to review your super fund, to check your nominated investment strategy is in line with your tolerance for risk. Your financial adviser can help explain these limits. Once again, be aware as annual limits on super contributions do apply. ![]() If you have a spouse or partner, it may be worth making a contribution to his or her fund. You may also be able to make a contribution out of your own pocket earnings on your super savings are only taxed at 15%, but be aware of the contribution caps. You could talk to your employer about making contributions via salary sacrifice, which is where part of your before-tax wage or salary is directed to super instead of being paid directly to you. For starters, you may be able to increase your before-tax super (concessional) contributions.
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