Do you think you have enough control over your investments and assets? Whether you’re thinking of saving up for retirement or want to save up to meet your financial goals, a self-managed super fund (SMSF) may be ideal for you.
With an SMSF, you’ll get to enjoy greater flexibility when acquiring and selling your investments, so you’ll be able to respond to changes in market conditions quickly. Moreover, SMSF members can also make binding death benefit nominations that don’t lapse and better tax management.
Indeed, having an SMSF proves to be a smart financial move! However, although an SMSF provides countless benefits to your financial circumstances, you must keep in mind that you have various responsibilities to fulfil.
Upholding Your Responsibility as a Trustee
By managing your own super and acting as the trustee, you will be responsible for the fund. All members of an SMSF are responsible for complying with the law and making decisions regarding the fund. With an SMSF, you will be personally liable for every decision, and you won’t have access to special compensation schemes if you lose money through theft or fraud.
Although you’re given the freedom to choose how to invest, you also have great risks of losing money. With liberty and control comes responsibilities and risks—it’s crucial to pay attention to how your assets are protected if you want to avoid the worst-case scenario.
SMSFs don’t guarantee financial success; it’s up to how well you manage it and fulfil your obligations as a trustee. Whether you choose to have pooled or segregated assets, the fact that you have a responsibility to protect the fund remains unchanging.
Protecting Your Assets
No financial decision is without risks, but you can mitigate them by protecting your assets. With a comprehensive asset protection plan, you can insulate your wealth or assets from being challenged by those with a doubtful claim.
When it comes to asset protection, an SMSF proves to be advantageous, as it can protect the assets supporting a member’s benefit in a trust structure. An SMSF can keep your assets safe from legal action in a concessional tax environment, so you’ll have complete control as a trustee when distributing assets after a member’s death.
An SMSF may also acquire a business premise by purchase or transfer. Since the fund is the owner of the business property, it is protected from business creditors. Thanks to asset protection, your business premises are safe even if the business gets sued or becomes insolvent.
By protecting your assets, the members of the SMSF could build their benefits by the rent received from the family business aside from the employer and member contributions.
No financial investment is without risk, which is why you must come up with a strategy that protects your assets from unforeseen circumstances. However, you can still achieve financial success despite the risks. As long as you work with an experienced financial advisor and prioritize asset protection, you’ll be able to build your wealth and have a financially stable future!
Are you looking for the best financial advisers on the Gold Coast to help you with managing your SMSF? Then, our team at Swell Financial Planning may just be who you need! You can count on us to provide thoughtful, researched financial advice with the intention of creating the best possible situation for you and the people who matter most to you. Connect with us today!