Super Strategy

A Self-Managed Superranuation Fund (SMSF) is a highly effective financial tool, and with careful planning and implementation, can be leveraged for Tax Planning and Wealth Creation.

For many, it also represents the bulk of their retirement saving and is the key to their comfort and quality of life in retirement. As such, it is important that regardless of how your Fund is utilised, your fund manager always has one eye to achieving your Fund’s main purpose of supporting you in retirement.

Thanks to our size, Sinclair Wilson has the strength in numbers to support a dedicated Self-Managed Superannuation Fund division. This allows our Self-Managed Superannuation Fund team to truly specialise and offer you the complete package, best practice Fund Management and a deep understanding of self-managed superannuation strategy.

When it is time to retire, our professionals can setup pensions, organize Eligible Termination Payments (ETPs) and provide advice on the right pension settings and fund strategies, to ensure your Fund can support your quality of life in a long and happy retirement.

However, we can also help from your Funds inception, applying our expertise to future-proof against legislative changes and provide access to advanced wealth creations tools – such as Limited Recourse Borrowing Arrangements (LRBAs).

The Superannuation Industry (Supervision) Act 1993 prohibits SMSFs from entering into traditional borrowing arrangements. However, borrowing under a LRBA is perfectly acceptable. This is because a LRBA limits the lenders right of recovery to the asset acquired through the loan, shielding the SMSFs other assets.

The tradeoff for the benefits of a LRBA is its complexity. To our SMSF professionals, the complex web of transactions between the Borrower, the SMSF, the SMSFs members and the special “Bare Trust” and Trustee (all of which are required to make a LRBA work) are just another day in the office. They will make sure everything is setup correctly so it all balances out to provide the desired effect, allowing your SMSF to purchase assets and leverage them for wealth creation.