So, you've decided to keep your superannuation in a Self Managed Super Fund (SMSF)? Making the initial choice is just the first step of what can be a complicated process of setting up a fund, making sure it has all the correct documentation, and managing in going forward.
Thankfully, there are professionals dedicated to helping SMSF trustees: SMSF advisers.
What is an SMSF adviser?
SMSF advisors, as the name suggests, are professionals dedicated to providing advice on SMSFs. Like SMSF administrators and specialist accountants, they exist to make SMSF trustees' lives easier.
Even with the do-it-yourself nature of SMSF, you can still choose to hire an adviser.
Do you need an SMSF Adviser?
While getting an adviser isn't a requirement, there are several reasons why you should consider including in your SMSF's team.
1. SMSFs have complex rules
There are several rules and regulations surrounding SMSFs and you must be aware of them to avoid penalties and sanctions. If you don't have time to study them yourself or you're worried about breaking rules, SMSF advisers can help. They have the knowledge and experience to navigate these complexities and ensure your SMSF is compliant.
2. SMSFs demand ongoing administration and management
The DIY aspect of SMSFs means that trustees are responsible for the overall operations, administration, and management of the fund. This includes tasks such as investment selection and monitoring, financial reporting, and compliance. An SMSF adviser can help you manage these tasks, allowing you to focus on other things.
3. SMSFs come with risks
SMSFs come with investment, regulatory, and fraud risks, which can be tricky to navigate. An SMSF fund adviser can help avoid or manage these risks.
4. SMSFs offer near-limitless potential investment decisions
One of the main advantages of having an SMSF is the greater control they can provide over investment selection than industry or retail fund. An SMSF adviser can help you identify investment opportunities that are suitable for your investment goals and risk profile.
5. SMSFs offer tax benefits
SMSFs can provide a range of tax benefits, such as lower tax rates on investment earnings and the ability to pool family assets. An SMSF fund adviser can help you structure your SMSF to take advantage of these tax benefits.
Top tips to help find an SMSF adviser
Once you've decided to enlist a professional to help you manage your SMSF, the next step is finding the right person for the job. Here are some aspects you might want to consider when searching for the right adviser:
-
Their qualifications and experience
Your SMSF adviser should have the appropriate qualifications and experience. They should hold an Australian Financial Services (AFS) licence and be a member of a professional body such as the SMSF Association. Ask about their experience with SMSFs and how long they have been advising clients, as well as their background. Some SMSF advisors have long histories in related fields and bring a wealth of relevant knowledge that could benefit your SMSF. -
Their communication style
A strong line of communication with your SMSF adviser is crucial. They should be able to explain complex concepts in terms you understand and be willing to answer any questions you have. -
Their fees
Various SMSF advisers charge various amounts for their services and while some may charge a flat fee, others may charge a percentage of the assets under management. Make sure you understand an advisor's fees and make sure you're comfortable with them before engaging their services. -
Ask about their investment preferences
Just like every person's retirement will be different, so to will be the investment strategies they use to build their retirement savings. An SMSF advisor needs to be comfortable advising you on the investments you're comfortable making. If you're SMSF is invested in property, it's likely best you don't choose an advisor who specialises in cryptocurrency, for instance.
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Extra Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
6.24% p.a. | 6.26% p.a. | $3,075 | Principal & Interest | Variable | $0 | $230 | 70% |
| Promoted | Disclosure | ||||||||||
6.19% p.a. | 6.21% p.a. | $3,059 | Principal & Interest | Variable | $0 | $0 | 70% | Disclosure | ||||||||||||
6.49% p.a. | 6.54% p.a. | $3,157 | Principal & Interest | Variable | $0 | $220 | 70% | Disclosure |
Image by Vitaly Gariev on Unsplash
First published in May 2023
Speak to an SMSF lending specialist
Whether you're looking to refinance or purchase investment property with your SMSF our partners can help you find the right SMSF home loan.
Collections: SMSF
Share