SMSF Trustees We Work With
SMSF – It's Superannuation – done differently
A self-managed super fund (SMSF) is a private super fund you manage yourself as part of preparing for your retirement. SMSFs are different from industry and retail super funds because you choose the investments, investing strategy, and any insurances the fund should hold.
Sapience Financial Advisors only work with SMSFs managed by a Corporate Trustee structure.
To manage your SMSF effectively you need to have a clear investment strategy. Whether its property or shares (or even buying art and collectibles) that motivates you to set up an SMSF, you're doing it because you believe you can achieve a rate of return in excess of the retail super funds that would otherwise be investing your money. To do this effectively you'll need to commit a certain amount of time to ensure your investments are managed effectively and learn to work with a trusted team of professionals. – Drew Browne, Founder Sapience Financial
SMSF Trustees
The Trustee controls the SMSF and makes all the investment decisions for the SMSF.
When you establish an SMSF, you have a choice of whether to appoint:
- Individual Trustees, or a
- Corporate (aka Company) Trustee
Companies acting as the SMSF Corporate Trustee are controlled by the directors of that company, and are usually the members of the SMSF.
Who do we work with
We only work with SMSFs managed by a Corporate Trustee, whose sole purpose is to act as a trustee and not carry on any other commercial activity.
Who uses an SMSF?
- Small Business Owners and Self-employed people often find SMSFs more suited to their needs as commercial property can be purchased by their SMSF and then rented to their business on commercial terms.
- Individuals and Families can use their super to invest in residential property, and take a more hands-on approach to managing their investing for retirement.
- Couples and Families can set up an SMSF, which allows them to pool their resources and invest together, make joint investment decisions, and plan for their retirement.
Regardless of who you are and the SMSF choices you've made, making sure you're running a compliant super fund – keeping good records, documenting key decisions, and auditing the fund annually – are all essential parts of acting as trustee for an SMSF.
SMSF is a complex and highly regulated area, so it's important to have a good understanding of the rules and regulations and work with professionals who can help you run a successful SMSF.
Our Focus
At Sapience Financial, we specialise in post-establishment SMSF advice.
- We focus on SMSF liquidity insurances for funds that may have purchased 'lumpy' investment assets, like property, and
- We focus on maintaining accurate documentation of SMSF investment strategy.
- We ensure all Corporate Trustees of an SMSF have a Corporate Power of Attorney in place to manage the risk of the director becoming unavailable to carry out their duties, due to sickness, injury or absence.
Ongoing Advice-On-Demand
Sapience provides advice-on-demand services for SMSF Trustees who don't necessarily wish to pay an annual ongoing retainer fee for a financial adviser, but who want to stay connected to our professional services on a fee-for-service basis, using our advice-on-demand service.
What our typical SMSF Client looks like
Running an SMSF is a complex and time-requiring task, and not for everyone.
This is why we only work with clients who have already decided to begin their SMSF journey utilising a sole-purpose corporate trustee structure.
- You have already established your SMSF (or already decided to do so)
- You have decided to use a company structure for the SMSF trustee
- You understand you need to regularly consider liquidity risks
- You understand you need to document your investment strategy
- You understand you need to consider diversity in your SMSF investment strategy
- You understand your individual and family financial needs are separate from your SMSF needs
- You value professional guidance, rather than taking a DIY approach to the security of your retirement
If this sounds like you, we'd love to have a chat to see whether we should work together.
Where to now
- Learn about SMSF 101 - Basic rules for Trustees
- Learn about SMSF 102 - The Sole Purpose Test and our Advice-on-Demand service
- Get to know the Statistical Risks of Life we all face
- Get to know the Growing Cost of Modern Medical Care
- Decide how you want to manage the SMSF on behalf of its members, when you should use a life insurance policy to manage the SMSF liquidity risk, and how much financial risk is appropriate for the investment strategy in place.
Call us for a confidential chat about your needs.