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Taking control of superannuation as a wealth-building strategy Posted on August 12, 2022
This month is an important one for superannuation funds as they go under the microscope once again for performance assessment. It’s got many members wondering how they can take control and start treating super not as a fall-back option, but as a driver for wealth.
The government is reviewing default super funds for performance. You might remember that 13 funds were named and shamed for poor performance last year. It’s all part of the Your Future, Your Super review started by the Coalition Government last year and is designed to weed out the dud funds. Already, 11 of the 13 funds have merged with bigger funds or restructured for improved performance. You could argue that the review is effective.
The Labor Government had previously communicated it’s support to continue the review process, although just recently the Australian Assistant Treasurer Stephen Jones suggested there may be a 12-month pause on the 2023 expansion of the review to not just default super funds, but to ALL super funds. This would be a shame for the industry that is really starting to sharpen its act.
So, what can super fund holders do to take control back into their own hands, reduce fees (for those with larger balances), and increase access to a wide range of investments?
We work with many established individuals and business owners to structure their superannuation in a Self-Managed Super Fund (SMSF).
In a SMSF, you and up to 5 additional members of the fund, usually family members, become the trustees and can choose which investments you’d like to make and when, from market shares, bonds, property and more, in a tax-efficient structure.
Along with choice, control and returns comes the increased responsibility for compliance and financial security in retirement. It is important to appoint professional advisors to a SMSF and set up a regular review process with them as the regulation landscape is constantly shifting in this space, as are the investment markets. Without this process, a SMSF might not perform in the best financial interests of its members.
SMSF’s are suitable for those with some capital that they’d like to push harder for a better return, those who are reasonably well-versed in investment markets of choice, and/or who run a small business and wish to expand the wealth of their family via a tax-efficient structure.
If you’re considering moving into a SMSF, or know you need to review an existing one, make sure you visit the government fact pages and join us on 14 September for a complimentary information seminar to help build your understanding and inform positive next steps. Register here: https://adviceco.com.au/smsf-seminar/
AdviceCo is an Authorised Representative of Count. ‘Count’ and Count Wealth Accountants® are trading names of Count Financial Limited, ABN 19 001 974 625 Australian Financial Services Licence Holder Number 227232 (“Count”). Count is 85% owned by CountPlus Limited ABN 111 26 990 832 (CountPlus) of Level 8, 1 Chifley Square, Sydney 2000 NSW and15% owned by Count Member Firm Pty Ltd ACN 633 983 490 of Level 8, 1 Chifley Square, Sydney 2000 NSW. CountPlus is listed on the Australian Stock Exchange. Count Member Firm Pty Ltd is owned by Count Member Firm DT Pty Ltd ACN 633 956 073 which holds the assets under a discretionary trust for certain beneficiaries including potentially some corporate authorised representatives of Count Financial Ltd.