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With the right financial services and strategy, you can maximize the potential of your Self Managed Super Fund (SMSF).
SMSFs offer Australians a powerful way to not only save for retirement but also to actively grow their income and investment returns for the future.
HOW DO SELF MANAGED SUPER FUNDS WORK?
A Self Managed Super Fund (SMSF) allows you to manage your own retirement savings. Unlike retail or industry super funds, where the management is handled on your behalf, an SMSF gives you control over how your money is invested.
You’ll be responsible for making decisions about contributions, investments, and insurance. Setting up an SMSF requires a significant commitment and understanding of the associated responsibilities, so it’s often helpful to consult with a financial planner or accountant.
Since 2007, SMSF managers have been able to take out loans registered to the super fund, making it possible to purchase assets and grow the fund’s value. However, these loans come with strict rules and regulations, so seeking professional advice before proceeding is essential.
For expert guidance on managing or optimizing your SMSF, contact Archangel Lending.
ADVANTAGES OF SMSFS
Opting to manage an SMSF yourself rather than choosing an industry or retail super provides you with a number of different advantages.
With an SMSF, you will have control over the asset allocation of your super fund. This will give you the opportunity to grow your revenue with asset investments across a number of different classes, including properties, shares from the domestic Australian market, or international shares from around the globe.
Purchasing property assets is a sound strategy for growing the revenue of your superannuation. When you are in charge of managing the SMSF, you can leverage the best from your portfolio by investing in a range of different property classes, gaining access to revenue growth across different property cycles to optimise the fund.
As the manager of your SMSF, you are able to make borrowing decisions. This enables the borrowing of money via loans registered to the SMSF — loans that are ring fenced for purchasing assets that grow the value of the super.
SMSF RESTRICTIONS
While managing your own SMSF does provide a lot of benefits, the process of operation may be complex and difficult to navigate. Learn more about some of the restrictions that are applied to SMSF managers.
Managing an SMSF can be a difficult process and one that may appear confusing and complicated if you are inexperienced.
There are a number of fees and charges associated with running an SMSF fund. You will need to be prepared to meet these additional costs to optimise your growth of revenue for retirement.
You will need to be very careful when reporting your SMSF tax to the ATO. Seeking professional assistance will help you to ensure that you remain tax efficient without overlooking any of the requirements, but will also increase your costs.
You and other fund members will not be permitted to reside in any of the properties owned by your SMSF, including all residential and commercial properties. This includes properties purchased as a result of SMSF borrowing.
SMSFs are governed by the SIS Act, or Superannuation Investment Supervision Act. If your SMSF’s investment strategy is in breach of the SIS Act, you may be subjected to heavy penalties.
SMSF LOANS: LENDING FOR SMSFS
Self Managed Super Funds (SMSFs) can borrow money under a limited recourse borrowing arrangement. This means an SMSF trustee can secure a loan from an external lender that is not associated with any of the fund’s members. The borrowed funds can be used to purchase either a single asset or a group of identical assets, all of which must be of equal value. These assets are held in a separate trust, although the SMSF will benefit from their proceeds.
SMSF loans, whether for purchasing property or other assets, are designed to grow the fund’s revenue while protecting the trustees. However, these loans cannot be used to buy properties for personal use by fund members.
Lending Rules:
REFINANCING SMSFS
Refinancing an SMSF can be a strategic move to enhance your retirement savings and revenue, but it requires careful planning and execution. At Archangel Lending, we specialize in helping clients navigate the refinancing process to access the most competitive interest rates available.
Our Services Include:
Why Use Archangel Lending?
At Archangel Lending, we are dedicated to helping you maximize the potential of your Self Managed Super Fund (SMSF) through expert lending and refinancing solutions. With our extensive knowledge and experience, we can assist you in acquiring both residential and commercial property assets within your SMSF, enabling you to create a diversified and effective investment portfolio.
We collaborate closely with you to identify and secure the most suitable loan options for your needs. Once we present these options, you can review them with your financial advisor or accountant to ensure they align with your investment strategy. By partnering with a variety of lenders, we offer access to a wide range of loan products, including both variable and fixed-rate options. Additionally, we can connect you with lenders who provide offset accounts to further enhance your SMSF strategy.
Get expert advice from professionals who care
At Archangel Lending, our team of experts is dedicated to providing you with comprehensive guidance without dictating your investment choices. We offer a variety of loan options tailored to meet your needs, potentially saving you thousands in interest rates.
Our role is to ensure you have all the information you need to make informed decisions. We will help you understand the terms and conditions associated with each loan product, giving you clarity and confidence as you navigate your financial journey.
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0411 487 089
michael@archangellending.com.au
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