Superannuation / SMSF
Too many of us get caught out because we either expect a certain amount from our superannuation or we think that we're due super earlier than we actually are. The ages for both super and Age Pension are creeping upwards and the amount of money that you'll need to keep yourself comfortable in your golden years is a complex calculation, so why not talk to a financial advisor at Shire Financial Advice about what you're due and when you'll get it.
The whole landscape of superannuation payments got a bit of a shake up in the May 2016 budget with the approval of SMSFs or Self Managed Super Funds. The key difference of a SMSF and other super funds is that the people who manage the funds are also the trustees, so they're aided by the fact you're running the fund for your own benefit and taking control of your finances. The catch is the flip side of the same coin because with an SMSF you are also responsible for complying with super and tax laws. Talk to Shire Financial Advice about whether an SMSF is right for you and how to make sure you manage it correctly.
Superannuation for Yourself
There's a common idea that you're eligible for your super at 55. Which is true if you were born before July 1960 and you've satisfied the other conditions of the scheme. But the preservation age is moving upwards and rises to 58 if you were born between July 1962 and June 1963 and rises to 60 if you were born after July 1964. To be sure you get the super you're expecting, talk to Shire Financial Advice and we can calculate what you're due.
Super for Employees
If you run a business and have employees then you have to pay super even for part time and casual workers. That means paying according to contribution dates by the quarterly cut offs, keeping records, and passing on Employee Tax File Numbers (TFNs) to their super funds. It's a complicated business but it's an obligation so talk to Shire Financial Advice about ensuring that it's all going to plan.
SMSFs or Self Managed Super Funds
The beauty of an SMSF is that you're in charge and you decide how best to invest your super funds. That's all they can do by the way, an SMSF is only available to provide for you and your dependents on retirement, nothing else is legal. There is also the issue that you are now legally responsible for complying with all tax legislation that impacts on the fund. Plus deciding just how best to invest that money is a sophisticated financial decision in itself. So do yourself a favor and talk to the experts at Shire Financial Advice today.
SMSFs vs Super Funds
As well as the issue of control there are a number of other factors that distinguish SMSFs from traditional super. For a start an SMSF is limited to four members and the trustees themselves are responsible not just for legal compliance but also for issues like buying insurance for members. Trustees in an SMSF shoulder the compliance risk, whereas traditional super passes that responsibility to the professional licensed trustee. Talk to a financial consultant at Shire Financial Advice about which is best for you.