Hi everyone, it’s Glen from 21st Century Group. Once again investments, construction and property management. Today, I’ve got Andrew Monckton, the owner of CM Partners Chartered Accountants and I’ve known Andrew since 1992. I’m going to talk to Andrew regarding self-managed super funds and SMSF’s. So my first question and I need my glasses for this is.Hi Andrew. Glen how are you?. Very good, say hi to everyone! Good morning everybody or good afternoon. Andrew, what’s a self-managed super fund or an SMSF as they say? Sure. Thanks Glen. A self-managed super fund is a mechanism that the Australian Tax Office allows you to roll over your super into a vehicle that enables you to make the investment decisions and management decisions of those funds that you put under management within your SMSF, your self-managed super fund. Okay. Great! Andrew what are the pros and cons of an SMSF or self-managed super fund? Sure. Yeah! A number of things that anyone who’s interested in looking at establishing a self-managed super fund should consider. You know, on the plus side you are starting to take control of your own investment decisions. You’ve got greater flexibility in those decision making processes. You can do them in a much more time effective manner. Enables you to even use funds not just from yourself but from a spouse. Roll both lots of super funds into a self-managed super fund and leverage on that combined balance, rather than each making decisions separately. So there’s some benefits there, one of those which is reasonably popular is then using those funds to invest in property. On the other side of the equation, you do need to consider the time that needs to be put into it as a trustee of a super fund. You are now responsible for those decisions. So good and bad decisions rest with you. You need to be aware of costs in establishing the fund, for a small balanced fund it could mean that it’s more expensive to go down to a path of self managed super and you need to be aware of insurance policies, making sure that if you’ve got an insurance policy with an existing fund that you put something in place before you you cancel or roll over that fund into self-managed environment. So that’s, that’s not an exhaustive list by any means but it is some of the, you know, relevant points that you should be considering before you go down the path of self-managed super. Fantastic! Well those are my first two questions to Andrew and I’ve got a couple more, and we’ll talk about it in our next session. Thanks everyone! It’s Glen from 21st Century Group here with Andrew Monckton the owner of CM Partners- Chartered accountants. Bye. Thanks Glen. Bye.


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