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SMSFs can be a great way to grow
and manage your retirement savings. The biggest advantage of an SMSF is the
ability to invest in property and other assets that would otherwise be
restricted for self-managed super funds.
An SMSF is not without its
disadvantages, however. Setting
up an SMSF may require you to get professional advice about the law and tax
implications. You will also need someone with experience with superannuation
administration to help you set it up and keep it running smoothly.
Can my SMSF loan money to me or my business
No, your SMSF cannot lend you or
any of your relatives money. Making this type of loan must be avoided:
There are many misconceptions
about SMSFs and one is that it's a way of providing financial assistance to
some members or relatives. Section 65 of the SIS Act prohibits superannuation
funds, including SMSFs, from providing financial assistance to members or their
relatives.
What are the Benefits Of A SMSF
SMSFs are a low-cost, high-return
investment option. They offer lower fees and higher returns than many super
funds and bank accounts.
No minimum contributions are
needed and they're easy to set up. The catch is that SMSFs are not as flexible
as public or industry funds and cannot be accessed until retirement.
Can my SMSF loan money to my business?
What is an SMSF Loan Agreement?
SMSF stands for Self-Managed
Super Fund. An SMSF Loan Agreement is a type of loan contract that is used when
an individual wants to borrow money from their Superannuation Fund.
The SMSF Loan Agreement is a
specific type of loan contract that is only available to the members of an
SMSF. This agreement provides the borrower with access to their Superannuation
Account for funding purposes and must be repaid with super contributions or by
withdrawing from the account in later life.
An SMSF Loan Agreement allows a
person to borrow funds from their Superannuation Account without paying any tax
on it as long as they are over 60 years old - this means, they have reached Age
Pension age.
Costs of running your own SMSF fund
The costs of running your own
SMSF fund can vary dramatically depending on the size of the fund and a range
of other factors. It’s
also not easy to get an NDIS Loan
using your SMSF
There are three types of
accountants that can be used to manage your self-managed super fund:
1) Relevant Member – The accountant who
is a member in the same professional organisation as you or has been a member
for at least 5 years.
2) External Member – A person who is not
a member in the same professional organisation as you but is otherwise eligible
to act.
3) Non-member – A person who is not
a member in the same professional organisation as you and does not qualify
under any other category.
