24 Sep 4 Tips About Running an SMSF
Superannuation Law, SMSF borrowing rules and the assets you can own have all changed significantly over the last five years. Here are 4 tips about running a SMSF to get you up to speed with a more modern Superannuation approach:
Using a financial adviser to maximise returns and minimise tax
The rise of the financial planner in the once accountant dominated world continues to evolve. Most banks wish to see that SMSF trustees have a strategy in place and more often than not prefer this to be set and discussed by a financial planner. Knowing how to enhance your fund structure to save on tax is crucial to SMSF trustees. Our tip – use a planner that has a SMSF themselves.
Owning collectibles has always been available to the SMSF trustee, however the ATO plans to crack down on collectibles and illegitimate use. Some examples we see are those trustees buying art and ‘showing’ the piece in their own home and buying sentimental pieces like the easy rider chopper. Our tip – make collectibles an insignificant part of your fund unless the balance is significant enough to justify potential losses.
Reduced paperwork using software
If you have an old fund, it is time to rethink the masses of paperwork you carry around. Almost daily we see an old school accountant requesting documents ‘the same way they have always done it’. Times have changed. Documents are much smaller and refined. Ongoing advice is electronic and you can even have your signature electronically placed. Our tip – If your accountant or financial planner is stuck in the dark ages, it’s time to start shopping for someone new who can carry you and your SMSF into the future (and save some trees!)
Have someone project manage your implementation
We get it, you want to be the ‘self’ in the Self Managed Super Fund. All too often however we are called upon to fix an error at the final stages, which is both costly on time and emotions. Our tip – Use a service to implement your documents, rollovers and opening of bank accounts and insurances. The ‘self’ in the SMSF (aka you) should be concentrating on the assets to purchase and the timely manner of settling with the broker or vendor – depending on your asset bias.