Self Managed Super Funds
Self Managed Superannuation Funds (SMSF's) are not only the fastest growing type of fund, they are also the superannuation sector with the most funds under management in Australia!
Financial security is the largest concern for people aged 45+ who are planning to retire. The majority of retirees will be relying on their superannuation fund as the main source of income for their retirement, particularly with current concerns surrounding the sustainability of the age pension system into the future.
The potential benefits of having a SMSF are wide ranging, however, it also requires time, effort and discipline, and incurs additional ongoing fees, including annual audit fees. It is important to speak to us about your suitability for a SMSF based on your particular circumstances, and you should also compare against the costs you are currently paying through your existing superannuation provider in the form of management and administration fees.
The primary benefit of a SMSF is the absolute control and flexibility the structure provides in allowing you to invest and manage your own retirement money. This includes the ability to invest directly in residential and/or commercial properties within your fund. MBA Business Solutions is well placed to assist clients with this complex area.
MBA Business Solutions can offer valuable assistance in establishing and administering a SMSF, enabling you to better understand how to govern your own financial destiny. We cover the entire formation, ongoing compliance, and administration process of SMSF’s in accordance with the relevant regulations, offering you greater peace of mind when planning for a future you can enjoy.
It is now possible for a SMSF to borrow in limited circumstances to acquire fund assets which is a major shift in the landscape under previous rules where SMSF's were prohibited from borrowing. This is possible through what is known as a "limited recourse borrowing arrangement" which effectively quarantines the security for the loan to the specific asset that is purchased.
SMSF Loans can be a particularly complex area that are strictly regulated by legislation so they require a specialist like MBA Business Solutions that understands these laws and can assess your circumstances to determine whether this suits you.
There are a number of ways in which a SMSF Loan can be structured and it depends very much on the specific facts of each case as to what would suit you best. It can be a very effective way though to acquire properties within a fund where there is insufficient cash reserves to purchase outright, particularly if the property to be acquired is a commercial premises from which your own business is operated.
Integration with Financial Services
SMSF's are an area that typically overlaps between Accounting and Financial Planning. Our financial planning partners at Paris Financial work closely with us in ensuring the financial futures of our clients are appropriately looked after. They provide a "fee for advice" based service which means you can seek advice without necessarily having to also take on recommended products as part of a package.
This provides you with the flexibility to be able to have a plan prepared to set out some goals and targets moving towards retirement without the fear of being pushed into product areas you don't feel comfortable with. Of course, if you do need assistance selecting investments and/or insurances then our financial planners are more than happy to assist.