Almost half of the older Australian population faces a massive shortfall once they stop working after conceding they have a superannuation balance of less than $100,000. To avoid this future, you need a solid plan, made up of sound professional advice.
Superannuation, being a tax concessional savings vehicle can provide a very good foundation in building, and later funding, a desirable retirement lifestyle. There are a variety of different types of superannuation funds, ranging from industry, retail, wrap accounts, defined benefit and self-managed superannuation vehicles and more.
VARIOUS SUPERANNUATION STRUCTURES
| Industry Super | Retail Super | Super Wrap | Defined Benefit | Self-Managed Super | |
|---|---|---|---|---|---|
| Administration Costs | Dollar and % based | Dollar and % based | Dollar and % based | Internally Calculated | Capped based on the obligations of the fund |
| Investment Fees | % Based | % Based | % Based | Internally Calculated | Choice |
| Investment Options | Limited to fixed interest, cash, indirect shares, property and infrastructure | Limited to fixed interest, cash, indirect shares, property, infrastructure, specialist managed funds | Limited to fixed interest, cash, indirect shares, property, infrastructure, specialist managed funds, ETFs and direct shares | Usually not investment linked unless there is an underlying accumulation account too. Limited investments if such. | Dependent on the underlying investments in the fund |
| Insurances | Life, Total and Permanent Disability, Income Protection | Life, Total and Permanent Disability, Income Protection | Life, Total and Permanent Disability, Income Protection | Invalidity and life benefits built into the fund offerings | Life, Total and Permanent Disability, Income Protection |
| Features / Benefits | |||||
| Consequences / Shortfalls |
+ Industry Superannuation Funds
Are widely available to a number of workers and generally offer good value, low cost administration, default insurance and investments options that can be tailored by members to suit their needs.
+ Retail Superannuation Funds
Generally offer more indirect investment options and the availability of more specialist managers and mandates. Depending on whether the fund is a corporate or personal superannuation fund will have a bearing on fees and rebates applicable.
+ Wrap Superannuation Accounts
Offer the ability for investors to target an increased number of managed funds and direct shares often limited to the ASX300 or ASX500. Comprehensive tax reporting, administrative services are other features are often found in superannuation wrap accounts.
+ Defined Benefit Funds
Rather than being investment linked, see the account value determined by a pre-determined calculation consisting of variables such as average wage multiplied by duration of service, member contributions and an actuarial factor. Often these funds are no longer available to the public as new investments. As such great care and consideration needs to be taken with existing defined benefit member accounts. The various superannuation options mentioned on this page see ultimate discretion remaining with the various trustees and often have percentage based fees associated with the underlying investment management, administration and reporting duties.
+ Self-Managed Superannuation Funds
Allow members to control their own superannuation investments for retirement. You have a wider choice of investments than in retail or industry superannuation fund options. The fees are generally lower and the flexible nature of SMSF’s allow you to benefit from the significant tax advantages that superannuation provides. Innovative Wealth Solutions offers specialist, comprehensive advice in all areas of Self Managed Super Funds, including establishment, administration, compliance, through to upgrading trust deeds, audit, retirement and estate planning.
OUR SMSF SERVICE
We prepare, document and implement a superannuation investment strategy that will assist you build wealth for retirement.
A comprehensive SMSF service is delivered through our sister company, encompassing set up, all accounting, compliance and administration requirements, including the fund’s paperwork – tax returns, member contribution statements and the annual audit.
Regardless of whether you are looking at residential or commercial property investment, or building a share portfolio, there’s a lot to consider with regards to correctly choosing and structuring your investment plan to suit your objectives.
The first step in any financial plan is to set some goals. What are you trying to achieve? How long will it take? The investment you choose should suit your investment timeframe. Or if you have already set your goals, your financial decisions should support those goals.
In our consultation we will begin to understand how much risk you want to take to achieve those goals, thereby developing the most effective pathway you take to achieve your goals. The course you take will be shaped by where you are now and where you want to get to.