AREAS OF ADVICE
Self-Managed Superannuation Fund – SMSF
Our team of Self-Managed Super Fund specialists can help you setup and administer a retirement fund you control.
Investing
Investing made easy. Our team of experienced advisers will work to develop an integrated portfolio that meets your specific requirements.
Property Investment
Use our experienced property team to develop a property investment strategy to meet your objectives.
Personal Insurance
Use our expertise to deliver a level of cover that suits your personal requirements.
I'm thinking of starting a self-managed
super fund
Is an SMSF for me?
Australia has a compulsory superannuation contribution environment, with most individuals able to choose their own superannuation fund. Generally speaking, you have three options to save for your retirement:
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Investing in APRA-regulated funds – these superannuation funds have many individual members and are managed by external trustees, for example AMP Flexible Superannuation Fund, Australian Super, Public Service Superannuation Scheme.
Retirement savings accounts – an account offered by financial institutions (such as a bank) to save for retirement. They are not very popular.
Self-managed superannuation fund (SMSF) – superannuation funds with one to four members that are regulated by the ATO. As a general rule all members must also be trustee of an SMSF to ensure they are engaged in the decision-making of the fund.
SMSFs are the fastest growing sector in the superannuation industry, with approximately 566,735 funds at 31 December 2015. The sector also accounts for approximately 29% of all superannuation savings.
However, the current popularity to SMSFs does not mean that they are the right choice for your retirement savings.
A key driver of individuals switching to SMSFs is the wish to gain control over investments. Nevertheless, gaining control over your investments is a trade-off – you take on obligations to operate and manage your SMSF within the bounds of the law. This requires commitment, a significant amount of time and a hands-on approach.
SMSFs are also complex - even seasoned SMSF members require assistance from SMSF professionals. Switching to an SMSF also means that you lose out on benefits available to traditional (or ‘APRA-regulated funds’), such as access to some compensation schemes.
Having said that, for the right individual, taking control of your retirement goals with an SMSF is extremely rewarding. MCD Advisory Serivces can help assess whether an SMSF is the ‘right fit’ for you by educating you about the risks and benefits of an SMSF and helping you along every step of the way.
Common SMSF Myths
Self-managed super funds are no stranger to criticism. As the single largest pool of retirement savings worth an estimated $590 billion, there's no shortage of pundits lining up for a pop at trustees for everything from taking too much risk to not taking enough risk or single-handedly causing the budget deficit.
As SMSF Specialist Advisers we are often questioned on the usefulness or legitimacy of SMSFs. The following are seven of the most common myths bandied about concerning SMSFs. By addressing them we hope to debunk these misconceptions and prove their worth as a legitimate and flexible retirement savings vehicle.
1. SMSFs have too much cash
At times it could be argued that self-managed super funds hold too much cash and miss market swings to the upside.
This doesn't really qualify as a flaw in my book. This behaviour is to be expected of any risk-averse investor, especially one who is retired. Also, it is a "flaw" just as replicable in a retail or industry fund.
2. You need $200,000 to start an SMSF
The arguments for this amount are mostly sound and based on the average administration fee an SMSF incurs and whether most investors would be better off paying less.
But employing this figure as a blanket hurdle for all investors – especially experienced ones – misses the point. Investment strategies and the choice of vehicle used should be about an individual's particular circumstances and not an arbitrary minimum dollar amount.
At MCD Advisory we place a context around the purpose, not just a dollar amount to justify the use of an SMSF.
3. SMSFs are too complex
There is perhaps more truth to this "myth" than the others but that's what professionals are for. As long as you don't do anything stupid or illegal, engaging a trusted adviser to handle and advise you, the SMSF is not as complex or costly as feared.
MCD Advisory will take most of the work out of an SMSF, making it more of a Self Controlled Super Fund, where you make the decisions, and we do the work.
MCD INVESTMENT SERVICES
Whether you are an experienced investor, or a beginner, not everyone has the time and market insight to make smart investment choices. Successful investment has very little to do with good luck, so how do you know what’s best for your circumstances?
At MCD | ADVISORY SERVICES we can help you make important strategic investment decisions that reflect your risk tolerance and long-term financial goals.
We have a diverse range of investment solutions that we can access, including; managed funds, direct property investment, Australian and International shares and more.
Direct Property Investments
We view property like any other asset-class; balancing risk versus reward and knowing that careful, independent product selection is critical to maximizing financial returns.
Most Australians feel comfortable with direct investment in real estate yet most financial planners overlook this asset class completely, leaving their clients to tackle this critical opportunity and associated risks.
Equity Investments
We can develop and help manage your direct equity investments, as part of your personal portfolio holdings or super fund; with full visibility of transactions and results.
Working with our team of experts, we can help you take control of your direct investments in shares, decide which companies to choose, when to buy and sell, or help you understand and decide whether equities are right for your circumstances and what role, if any, they should play in helping achieve your goals.
Managed Funds
We have the experience and industry knowledge to assist you in selecting which, if any, managed investments might be right for you, with the tools to monitor their performance.
With literally thousands of managed investment funds and schemes to choose from, navigating the minefield of fees vs. performance and risk vs. reward is fraught with danger. However, as we’re not aligned with any financial institution, our recommendations are about you and your goals, not limited to the choices set by a corporate or institutional master.
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MCD ADVISORY SERVICES
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