Helpful SMSF Strategies Your Accountant Should Teach You


Many Australians now invest their retirement savings in a self-managed super fund (SMSF) instead of traditional options. SMSFs can provide more control over how their retirement money is managed, reduce their tax burden, and help them keep their administrative costs low. By taking control of their finances, Australians can ensure they have a comfortable retirement and live well in their old age.

Before deciding whether to set up an SMSF, knowing its risks, choices, and responsibilities is important. You can choose to talk to an accountant about it or check out these tips for creating a robust SMSF strategy:

Risk Assessment and Investment Diversification

Considering your super investments, the risks, and rewards associated with each option are important. Risk level and diversification should be at the forefront of your decision-making process. Consider the potential returns and how they will help you meet your goals. Additionally, diversifying your self-managed super fund investments can lessen the impact of any single asset or risk. Taking a balanced approach to your SMSF investments may be a safer way to go.

Various Investment Options

An SMSF gives you more control over your investments than a traditional fund. You can decide what investments to make, when, and how to manage them. This allows you to customise investments to your individual goals and objectives. You can also benefit from tax advantages and access to professional advice.

Choosing the right investments for your self-managed super fund (SMSF) can be complicated. Depending on your needs and financial goals, you may want to invest in conservative assets that will give you regular income or in more risky assets that offer the potential for greater growth. It is important to consider all your options and make the best decision for your circumstances.

Retiring means thinking about how to safeguard your savings. One approach is to invest them in options with lower returns but less risk, such as term deposits or bonds. Building a good investment plan for your self-managed superannuation fund is a clever way to boost your retirement funds.

Real Estate

You can diversify your SMSF investments by including commercial and residential real estate. However, some regulations must be followed.

Self-managed super funds can not purchase residential property from someone related to a fund member, nor can fund members live in or rent out the property. If a business premise is to be purchased, rent must be paid to the SMSF at a rate comparable to the market rate.

Lenders usually approve a loan for a self-managed super fund to purchase a property, so long as the loan is no more than 70 to 80 percent of the property’s value. Additionally, the lender usually requires that the super fund have a company as its trustee rather than individuals acting as trustees.

Before proceeding, talk to an accountant, as lenders are becoming increasingly stricter when granting loans for SMSFs because of their limited access to resources.

A loan might affect your ability to manage your money, especially if you make little money.

In Closing

Keep your SMSF investment strategy up to date by regularly reviewing and adjusting it in line with your retirement goals and changes in the market. Doing so will help you stay on track and comply with superannuation regulations.

Futureproof Your Life with SMB Accounting

We provide a comprehensive range of services for individuals and businesses, from individual tax returns to small business accounting and audits of self-managed super funds. Our accounting services include using various packages, such as Xero, as well as audits of trusts, non-profits, special purposes financial statements, and more. We aim to provide our clients with accurate and reliable financial services. Contact an accountant in Sunshine Coast by dialling 1300-854-159!