We’ve spoken a lot recently about SMSF’s and how they can enable you to become more flexible in your approach to how and when you retire – but sometimes it can be a little overwhelming. But never fear, that’s why we’re here!
So we’ve compiled 4 simple steps that you can take today to increase your superannuation success!
So, if you do anything at all with your super (and remember, something is better than nothing!) do these four things!
Supply your TFN to your super fund
Check that your super fund has your tax file number (TFN). If your super fund doesn’t have your TFN, any concessional contributions are hit with a penalty tax (of course), and you won’t be permitted to make any non-concessional aor fter-tax contributions. And because all bad things happen in threes, you also wont be eligible for the co-contribution scheme.
Combine your super accounts
How many super accounts do you have? A lot of people don’t even know the answer to this, but is you’re like most people, finding out how many and combining them will save you thousands of dollars in fees. Even better is to combine you and your partner’s super accounts into one SMSF – saving you even more. We offer a low-rate flat fee, not percentage based, which means you know what you’ll be charged annually, with no inflating fee structre as your nest egg grows.
Identify your dependants and non-dependants
Ensure that you have clear plans about what happens to your super benefits and non-super assets in the event of your death. Doing some planning now can save your family a lot of heartache, and possibly save thousands of dollars in tax. Identifying who receives your super benefits when you die (by ensuring you nominate your beneficiaries) becomes more important when you plan to leave your super benefits to a non-dependant for tax purposes, such as a financially independent adult child.
Consider making concessional (before-tax) contributions
The level of income you earn will generally determine whether you can make after-tax or before-tax contributions. If you pay more than 15 cents in the dollar tax, then super starts looking attractive from a tax saving point of view. You may also be interested in making before-tax contributions if you want to offset a large capital gains tax bill.
Warning: When making concessional contributions (or anyone on a high income) be mindful of the contributions cap. For more information on this, please seek professional assistance.
Bringing it together
When it comes to superannuation, there are many things you could and should be doing to benefit you in the long run – and all it takes is a little effort today!
To learn more about getting started on a SMSF today, contact the iInvest team today!
