SMSFs are incredibly difficult to handle by yourself which is why you may want to consider working with LifeTime Financial Group.
LifeTime Financial Group has been providing financial advice for more than 20 years and are now advising on Self Managed Super Funds (SMSFs). These are funds for people who can invest at least $250,000 and are able to manage their own funds on their own or with other people (called trustees).
You could open a SMSF as an individual or corporation but they all need to comply with the Australian administrative, taxation and legislative obligations. Since the obligations are quite complex, this is where LifeTime Financial Group can be of assistance.
What are some things to consider about LifeTime Financial Group SMSFs?
As mentioned above, LifeTime Financial Group SMSF requires a minimum investment of $250,000 in order to cover high management and consulting costs since law and tax consultants will be involved in this process. As a trustee, please bear in mind that you are responsible and you need to comply with the applicable laws, besides following the rules stated with the other trustees (if applicable).
You should also be an experienced trader or investor so you can diversify your portfolio or set investment targets or retirement targets. If you are not comfortable with this, this is when you’ll need extra support from a LifeTime Financial Group adviser.
What are the features of a LifeTime Financial Group SMSF?
SMSFs are different from other types of superannuation funds as;
- The members of an SMSF are the trustees (or directors / legal representatives of a corporate trustee).
- There’s a wider investment range.
The SMSF requirements are;
- It has to be created for the sole purpose of distributing retirement benefits to the trustee or trustees.
- Maximum of four trustees are allowed where all the members have to be trustees.
- In case of a single trustee fund, you need to appoint a company or a second person as individual trustee.
- Trustees cannot receive compensations or benefits and the SMSF cannot lend or send money to a trustee or even borrow money except of limited recourse loans under some strict set of requirements or certain short-term loans to pay benefits.
- Fund objectives and the related investment strategy to meet them need to be formulated by the trustees.
- The investment strategy has to be reviewed and approved by all the trustees.
Allowable contributions for your LifeTime Financial SMSF
There are two types of allowable contributions:
- Mandated employer contributions. When you get your paycheque or your salary from your employer, a part of your contributions has to be paid under law or an industrial agreement for the benefit of a fund member (super guarantee contributions are included). As trustee of an SMSF, you can accept mandated employer contributions for the other members at any time.
- Non-mandated employer contributions. Non-mandated contributions are those contributions made by the employer over and above the law or award obligations or simply made by members or on behalf of them. Before accepting a non-mandated contribution, you need to check the member’s age: you can accept all the types of contributions coming from members under 65 years old, but not over 75 years old. For members between 65 and 75 years old, the non-mandated contributions can be accepted only if a member has worked for at least 40 hours in period of 30 consecutive days in each financial year.
Each member has some contribution caps, whose level depends on the type of contributions: they can be concessional (employer or personal contributions claimed as an income tax deduction) or non-concessional (personal contributions not claimed as an income tax deduction). If you exceed either of the contribution caps you could pay additional taxes.
How about setting it up?
The investment strategy of your SMSF has to be designed in order to guarantee a minimum level of performance and make your retirement savings profitable. LifeTime Financial Group will help the trustee or trustees set a plan to find;
The permitted investments.
- An estimation of returns.
- The risk profile of the investments.
- The diversification of the fund’s assets.
If you set a wrong investment strategy, you could be fined and lose tax advantages as well as put your super fund at risk.
What are the pros and cons of having a SMSF?
Pros
- Lifetime Group will simplify the process for you
- A direct control over your retirement funds
- Wider investment range than public offer funds such as shares, real estate, managed funds, fixed interest and alternative investments.
Cons
- High level of responsibility
- Risk of tax penalties
- High consultancy costs (all fees are quoted on a case by case basis)
- Can be time consuming
How do I get into contact with LifeTime Financial Services?
If you would like to take advantage of the services offered by LifeTime Financial or have any questions regarding your new or existing SMSF, please complete the enquiry form above this page. When you’ve submitted your enquiry, a consultant from LifeTime Financial will get into contact with you promptly.
I have recently relocated from Australia to France to live with my parents who are both pensioners. Originally from the UK (I have dual nationality). I am not eligible for unemployment benefit in either France or the UK (I do not meet the criteria of either country). I am however eligible for a tax rebate from the ATO which is being processes but I was wondering whether or not, given my current work status (unemployed) and unable to speak French fluently, which I believe will cause a problem with finding regular employment, if I may be eligible to make an early claim from my super fund.
Kind regards
Joanna
Hello Joanna,
thanks for the question.
According to the Department of Human Services you can get access to superannuation early if:
- you experience severe financial hardship
- you have a terminal illness
- you experience permanent incapacity
- your balance is $200 or less, and
- permanent departure from Australia
- specific compassionate grounds e.g medical or dental treatment for you or your dependant, arrears on your mortgage, expenses associated with your dependant’s death, funeral or burial etc.
If you feel your reason fits into these you should speak to your superannuation provider directly.
I hope this helps,
Marc.