Financial Newsletter Sunshine Coast
Welcome to Unique Financial Partnerships, keeping you up to date with all financial planning, self managed superannuation funds, tax minimisation, life insurance, on the Sunshine Coast and around Australia.
The information in this newsletter is current at the time of printing. Contact us for updates.
It can also be said that many younger people do not yet realise the importance that superannuation will play in their later life. Too often superannuation is just placed in a “default” option with a large insurance company or the like without regard for your own personal investment objectives. Superannuation needs to be worked much harder than this.
We often talk about “diversification” and “not putting all your eggs in one basket”. Whilst this can be achieved in your normal portfolio without too much heartache, the many rules and regulations that govern superannuation and the structure of many super products can make it difficult to make the necessary on-going changes to your portfolio to ensure that it remains well-balanced.
A great way of achieving flexibility and control of your super investments is to set up a self-managed super fund (SMSF). SMSF’s let you choose investments according to your own trust deed and strategy, allowing more flexibility and choice of where your retirement savings are invested.
Many trustees or individuals running their own SMSF utilise WRAP accounts to manage the administration and reporting of their
investment and also to benefit from access to wholesale products, which are generally not available to individual investors. A wrap
account allows you to access a wide range of investment but the WRAP provider does all the accounting and paperwork for investments
held within the account, making it easy to complete the end of year super tax return.
Another great alternative, which many Australians are now embracing, are Superannuation Master Funds. This structure provides you with very broad investment flexibility and achieves very much the same results as SMSF’s. Investors in this type of fund are able to access and choose from a wide range of wholesale managed funds and in some cases ASX shares and even unlisted property syndicates.
The beauty of the Superannuation Master Fund is that the investor and their financial adviser can focus on maximising investment returns and achieving long term investment objectives similar to that of a SMSF.
The advantages of investing through a Super Master fund are:
- Access to wholesale managed funds: Wholesale managed funds typically mirror the equivalent retail fund in that they share similar if not identical underlying investments and adopt similar or identical investment strategies. Where they are different is that they have significantly lower fees to retail funds and that the funds can usually only be accessed by high net worth individuals.
- Flexibility of investment choice: You make the decisions where you want your money to be invested and are not restricted to
pre formulated portfolios or mixtures of fund mangers. If a manager is not performing you can easily change. Some master funds
do not charge transaction fees, allowing you unlimited restructures and switches. You can also choose to invest in shares and in
some cases unlisted property Syndicates
• A concessional tax environment which is administered by the trustee: This means more time to do the things you want to be doing…like choosing your investments.
For further information on getting your superannuation wrapped up or to discuss any other financial planning needs then please do not hesitate to contact me at anytime. We would like to thank Netwealth Investments Limited for contributing to this article.
DISCLAIMER: This is general advice only. It does not take into account an individual's objectives, financial situation or needs, which are necessary considerations before making any investment decision. Opinions constitute our judgment at the time of issue and are subject to change. This report was prepared by Futuro Financial Services for the sole use of the intended recipient. Its contents should not be disclosed, in whole or in part, to any other party without prior consent in each case. To the extent permitted by law, Futuro, its employees, consultants, advisers, officers and authorised representatives are not liable for any loss or damage arising as a result of any reliance placed on the contents of this report. Please contact us directly should you have any queries in relation to the information provided in this Report on 07 3018 0400.
Disclaimer
All representations and information contained in Futuro in Focus are made in good faith and are believed to be correct at the time of preparation. Articles are of a general nature and they do not purport to be specific investment advice. Individual needs or other considerations have not been taken into account, thus information contained herein should not be relied upon as a substitute for detailed advice. Futuro Financial Services will receive fees or brokerage from the provision of advice or placement of investments. You may, by contacting our Privacy Officer on 07 3018 0400 or by writing to Futuro Financial Services Privacy Officer GPO Box 942 Brisbane QLD 4001, request not to receive further editions of Futuro in Focus.
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