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Self Managed Super Fund

Self Managed Super Funds (SMSF) Australia
Self Managed Super Fund Management & Administration Information Australia

Find out if a Self Managed
Super Fund is for you

Is a self managed super fund for me - what do I need to retire comfortably?

There are numerous different types of superannuation that you may be presently invested in, and each provides some benefits over the other. If the only “real” benefit is the seeming simplicity, then you should reflect very carefully whether that is helping you move in the right direction and whether a self managed super fund could get you there faster.

An appropriate place to start your considerations for retirement strategies would be to consider which phase in your working life you are…


What is a Self Managed Super Fund (SMSF) and why are they so popular in Australia

How can a Self Managed Super Fund help me.

A self managed super fund (SMSF) is a kind of superannuation plan that is set up to deliver retirement income for the members of that fund. The beneficiaries are also the members and a SMSF must exist for the sole purpose of providing retirement funding, passing the ‘sole purpose’ test.

A self managed super fund can have up to four members with most set up by couples. They have grown massively in popularity since the GFC and now constitute the main type of superannuation. This type of super fund offers the most control and flexibility.

YOU have the power over YOUR investments with a self managed super fund.

Substantial responsibilities is also a part of a self managed super fund. As a trustee or director the burden is on you to keep all super assets separate from your individual assets, to invest appropriately and to make sure no laws are broken.

The good news is that management of your self managed super fund can be outsourced to specialist consultants such as Clime Super, who will take on the administrative burden for a lot less than your typical high-street accountant.

The Three Types of Superannuation Funds | Self Managed Super Fund (SMSF) Administration & Management Services Australia

Self Managed Super Fund (SMSF) Administration & Management - Which Super Fund is for Me?

There are three main types of super funds in Australia:

Industry funds: Originally set up for an industry (such as the public sector) or profession (lawyers/doctors, for instance) and now accessible to the general public. These not-for-profit firms are run to benefit members.

Retail Funds: Run to benefit of shareholders by large finance companies.

Self Managed Super Funds (SMSF’s): With an SMSF, you run your investments directly, instead of being in a joint fund. The advantages are many: A greater amount of investment opportunities, you can link your family assets and you can take full advantage of franking credits thereby lowering your taxes.

Currently, there is now around 500,000 SMSFs, with over $1.5 trillion invested in SMSFs in Australia alone. This has led to retail funds to offer hybrid options or wraps where you own the underlying investments while the fund holds trusteeship. If you look at this selection, be sure to check the underlying costs as some can be hefty.

Advantages of a Self Managed Super Funds (SMSF) in Australia

There are many advantages to having a self managed super fund

With a Self Managed Super Fund in Australia you have better control, improved flexibility and tax planning are the loose classifications of the key advantages of SMSF’s. The main advantages are:

  • Flexibility of tax planning and deferment of tax expenditures
  • Greater control of investments – including, commercial real estate and collectibles
  • Gather family assets into one fund allowing you to pay one fee
  • You can transfer assets ‘in specie’ such as commercial real estate, shares, term deposits
  • Access to franking credits, which can be offset against tax payable by your super fund (or you can receive a refund if no tax is payable)
  • Flexibility regarding transition to retirement options, which has benefits from a tax perspective

Register a Discrete Share Portfolio with Clime Asset Management for a SMSF Set Up or Restructure offer.

Is a Self Managed Super Fund (SMSF) for you?

A Self Managed Super Fund (SMSF) is not necessarily for everyone

There are a number of questions to consider when you are thinking about entering into a Self Managed Super Fund…

  • Do you full understand the responsibilities? Make sure that you read up on what is required before moving forward as the consequences of the decisions you make are significant.
  • Do you have the interest, time and disposition? SMSFs should not be taken on lightly. The benefits can be significant, however, it’s important that you know what you are doing.
  • Do you have the funds to make this venture worthwhile? The costs of management and auditing the fund need to be counterbalanced against the amount invested within that fund. Characteristically the setting up of an SMSF is not recommended if total capital is under a certain sum.
  • Is your fund of a sufficient size to make it worthwhile? The costs of management and auditing the fund need to be offset against the amount invested within that fund. Typically the setting up of an SMSF is not recommended if total capital is below a certain amount.
  • Do you want to invest in asset classes not typically covered by “regular” funds? A self managed super fund will allow you to invest (with restrictions) in a number of asset classes such as investment properties, equities and even artwork, if they are of interest.

Having an SMSF can be a hugely beneficial wealth creation vehicle and with Clime, the work and worry can be taken off your hands. However, while you can outsource both the administration and the investing, you cannot outsource your obligations as a trustee or director of your trustee company. Register

When is a Self Managed Super Fund (SMSF) the right option?

A Self Managed Super Fund SMSF can be a most flexible option in Australia

To grow your wealth, there is no doubt that an SMSF is the most flexible option in Australia. With your own super fund, you can access direct shares and a wide range of investments not available when your money is invested with everybody else’s. It allows you an unsurpassed degree of tax planning and tailoring and it can also be very cost-effective.

If you choose to do so, you can outsource the management of your share portfolio. And with with Clime Asset Management online, a top performing fund manager, they can manage your SMSF while you relax and enjoy the benefits without having to worry about your investments on a daily basis.

Because of fixed fees, it is usually said that the minimum for the establishment of an SMSF in Australia is around $200,000. But this is simply a guideline and there is no actual minimum amount that you must have.

When you establish a Discrete Share Portfolio with Clime Asset Management, Find out about our Online SMSF Setup or Restructure offer.

Opening a Self Managed Super Fund (SMSF) in Australia

Things you need to do to open a Self Managed Super Fund (SMSF) in Australia

If the prospect of being able to regulate your own assets, by having a Self Managed Super Fund in Australia seems like it’s for you then here is a quick guide on the things that you need to do, in order to run it with a corporate trustee (as we have suggested)…

  • Open bank account
  • Set up trustee company
  • Admit members
  • Appoint Directors
  • Buy a trust deed
  • Sign declarations
  • Apply to be regulated
  • Develop investment strategy
  • Prepare your fund for investing
  • Establish accounting and administrative procedures
  • Accept contributions

Clime Asset Management can help with the management of your personal SMSF with our Clime Super administration service. We can also help you with our SMSF Setup or Restructure offer, when you establish a Discrete Share Portfolio with Clime

I have a Self Managed Super Fund (SMSF) Now what?

Perhaps you already have an established Self Managed Super Fund (SMSF)

After the jubilation of creating your own SMSF comes the reality that you are now accountable for your own retirement investments. Now you need a printed investment strategy, and you want to return a higher profit than you had in the past. So what are suitable investments for your SMSF? What do you invest in?

If you were to see a financial adviser, they would probably suggest investing in four main classes of so-called ‘balanced funds’ which have a history of under-performance. For most people, Clime feels that this structure is unsuitable for a number of reasons:

  • Cash is eroded by inflation. You need some cash in your SMSF, but this should not be seen as an investment, but rather as working capital for you to use to the best of your insights.
  • Real estate can often be clunky and can limit your flexibility. You may also be forced to sell at a bad time in the market. Real estate runs high transaction costs and borrowing which is subject rules.
  • Global equities present an exchange rate risk unless hedged, which can be expensive. And there are no franking credits with global equities.

Clime Asset Management invests in the value Australian companies. These companies have real estate investments as well as interests overseas and by investing on the ASX you can have exposure to all asset classes.

These are the most important reasons why we believe that investing in Australian shares is a great option for most SMSFs. Clime asset Management does not invest in just any ASX listed company, and certainly not in the index. Through careful consideration of stock picking, Clime asset Management has been able to achieve superior results for investors, most of whom invest with us in a self managed super fund.

SCRIPTS - Roger Montgomery, Value Investment Insights Sydney