When setting up a Self-Managed Super Fund (SMSF), one of the first and major decisions to make is whether or not you want your SMSF to have an individual or corporate trustee structure. Both structures have their advantages and disadvantages. This video helps to highlight some of the differences and advantages and disadvantages of each structure.
SMSF Penalty Regime
From the 1st of July 2014 the ATO has been granted new penalty powers that they can enforce on Self-Managed Super Funds and their Trustees. These penalties can apply for errors that occurred prior to the 1st of July 2014 that haven’t been fixed, and will apply for errors that occur after the 1st of July 2014. These powers include: Education Direction, Rectification Direction, Fines
Benefits of Salary Sacrifice
Salary sacrifice contributions are a portion of your salary that you have arranged with your employer to contribute to superannuation rather than take the funds in your hand. This means these funds are taxed at the super tax rate of 15% instead of your marginal tax rate which could be up to 47%, however means these funds stay in super until you retire.
The main benefits of a salary sacrifice arrangement is that the amount is taxed at a lower rate and the contributions increase your superannuation account balance. This means you are accumulating more super to fund your desired lifestyle in retirement.
Pros & Cons of an SMSF
Ever thought about running an SMSF? It can be a great investment option for your super and you get a more hands on approach to the management. You choose the investments and control the fees that you’re willing to pay. But what does it really involve? It’s not as easy as setting up a bank account and rolling in all your super money to do with as you please.
Watch our video to get an understanding of what’s involved, what the benefits are and where the downside is.
Even if you have an SMSF, you should watch this video to ensure you understand some of the major advantages and disadvantages to running your own fund and the obligations on trustees in running an SMSF.
What is life insurance?
Life (also known as death) cover is a way of protecting your family’s financial future. It provides a lump sum payment in the event of the insured’s death or on diagnosis of a terminal illness where it is likely that death will occur within 12 months.
Life cover provides much needed financial security in a time of uncertainty. The lump sum payment can be used to cover mortgage payments, school fees, bills, groceries, other living expenses, final medical costs, funeral costs or any other means as the beneficiary desires. The loss of a loved one is enough to deal with and the last thing you want your family to worry about at a time like that is money. Life cover gives you the peace of mind of knowing that your loved ones will be taken care of if you are no longer around.