Frequently asked questions
You may already have your own Self Managed Superannuation Fund (SMSF) or you may be considering establishing one. Either way, this information provides a brief introduction to some of the considerations associated with establishing an SMSF and the ongoing day to day tasks involved in running it. Also highlighted are some Macquarie solutions for SMSFs. The decision to establish an SMSF is not to be taken lightly. Its suitability is dependent on a variety of factors including your individual circumstances.
You should seek independent professional advice before making any financial decisions. If you are interested in setting up an SMSF, it's important to discuss this with your financial adviser. If you do not have an adviser and would like to speak to one, you can contact a Macquarie Private Wealth adviser who, for a one-off fee, can give you specific advice on setting up an SMSF.
For more information, call us today on 1800 078 102 (Monday to Friday 8am to 6pm Sydney time).
Useful links for further information:
Understanding the basics
What is an SMSF?
SMSF stands for Self Managed Superannuation Fund. Superannuation (super) funds are tax-favoured trusts used to accumulate and hold retirement savings. SMSFs differ from other superannuation funds in that up to four people can be members of the fund while also taking on the responsibility of being trustees of the fund (or directors in the case of a corporate trustee) and managing the fund’s assets.
Why do some people choose to have an SMSF rather than belonging to another type of superannuation fund?
There are a number of reasons why someone may choose to have an SMSF. The main reasons include having more control over how to invest the fund’s assets (in comparison to investing in a non-SMSF), greater choice of investments, greater scope for tax planning, as well as possible advantages in terms of costs (depending on the level of funds invested).
If you are interested in setting up an SMSF, it's important to discuss this with your financial adviser. If you do not have an adviser and would like to speak to one, you can contact a Macquarie Private Wealth adviser who, for a one-off fee, can give you specific advice on setting up an SMSF. For more information, call Macquarie on 1800 184 207 (Monday to Friday 8am to 6pm Sydney time).
What level of taxation applies to an SMSF?
Like other types of superannuation funds, the taxable income of an SMSF is generally taxed at the concessional rate of 15 per cent. Where a member is drawing a pension from the fund, any income and capital gains generated on assets held to support the pension are generally subject to zero tax.
The taxable income of an SMSF is calculated as follows:
There are special tax rules that apply to capital gains, where the effective rate of tax may be reduced depending on how long an asset was held prior to disposal, and other rules that apply to non-arm’s length income (such as dividends received from a private company or distributions from a family trust in certain circumstances) which may be taxed at the highest marginal rate of 45 per cent.
What type of contributions can be made into an SMSF?
There are two basic types of contributions that can be made into any superannuation fund, with the distinction being based on tax treatment of the contribution. These are called concessional, and non-concessional contributions.
Concessional contributions tend to be ‘before-tax’ contributions, such as Super Guarantee (SG) payments made by employers, salary sacrifice contributions and personal contributions claimed by an individual as a tax deduction. Concessional contributions are subject to an annual contributions cap, with amounts that exceed this cap being taxed at a higher rate (see What maximum allowable amounts apply to different contribution types?).
Non-concessional contributions are generally ‘after-tax’ contributions, such as those an individual may make from post-tax take home pay or a contribution made into a member’s account by their spouse. Non-concessional contributions are also subject to an annual contributions cap, with amounts that exceed this cap being taxed at a higher rate (see What maximum allowable amounts apply to different contribution types? ).
Contributions may be made into an SMSF in the form of money or as an in-specie transfer of assets (eg a portfolio of shares).
Some ‘special’ types of contributions may qualify for special tax treatment or exemptions from the contribution caps. These include Government co-contributions, contributions from the sale of small business assets and contributions representing compensation payments for a personal injury where certain criteria are met.
The Government co-contribution scheme is an initiative to help low to medium income earners save for their retirement. If your total income is less than $31,920 per year (during the financial years of 2010/11 and 2011/12), and you meet certain other eligibility criteria, then you will receive $1 from the Government for every after-tax dollar you contribute to superannuation up to a maximum of $1,000.
With all contributions, SMSF trustees should check that the SMSF trust deed allows that type of contribution and that contributions do not exceed the capped levels. An accountant or financial adviser may be able to assist with this.
How can I contribute to an SMSF through salary sacrificing?
Salary sacrificing is an agreement between an employee and an employer where the employee gives up part of their pre-tax salary in return for that amount being paid directly into their superannuation fund, such as an SMSF.
The main advantage of salary sacrificing is that the amount of salary that is paid directly into the superannuation fund is taxed at a maximum rate of 15 per cent, instead of the employees’ marginal tax rate (which would apply if that amount was taken as salary). The trade off is that this money is ‘preserved’ which means that it cannot be accessed until the superannuation fund member meets certain criteria, known as ‘conditions of release’, such as retirement.
Are there age criteria that apply to making contributions to an SMSF?
There are specific criteria that apply to making contributions to superannuation at different ages. The following are minimum standards that apply, while the specific trust deed of each SMSF may vary in terms of any additional criteria.
Under the age of 65 years
Members of an SMSF under the age of 65 can contribute (or have contributions made on their behalf) to the SMSF regardless of their working status.
For members aged between 65 and 69
The SMSF can accept employer mandated contributions such as those required under the Super Guarantee or under an agreement certified, or award made, by an industrial authority. However for all other employer contributions or member contributions (such as personal or spouse contributions) the member must satisfy a work test. The work test requires the member to have worked at least 40 hours in any consecutive period of 30 days in a financial year in order for the fund to accept contributions in that financial year.
For members aged between 70 and 74
The same rules apply as above (for ages 65 to 69) except that while personal contributions made by the member can still be accepted, the SMSF cannot accept contributions made by someone other than the member themselves or the member’s employer (eg spouse contributions cannot be accepted). Personal and non-mandated employer contributions may be accepted by the SMSF on or before 28 days after the end of the month in which the member turns 75 (provided the work test is met).
For members aged 75 and over
With the exception of non-mandated employer contributions and personal contributions made within the period referred to above, from age 75, the SMSF can only accept mandated employer contributions such as those made under an industrial award or certified agreement. Note that employers are not required to make Superannuation Guarantee (SG) contributions for employee’s aged 70 or more. The Government has announced it will increase the eligibility age limit for the Super Guarantee to 75 from 1 July 2013. This change has not yet become law as at 15 June 2011.
What maximum allowable amounts apply to different contribution types?
Concessional contributions:
For those under the age of 50 for the full financial year, the concessional contributions cap is $25,000 per year (in financial year 2011/12). For those aged 50 or over at any time in the financial year, the concessional contributions cap is $50,000 per year until 30 June 2012. Therefore from 1 July 2012 the concessional contributions cap will generally be $25,000 (indexed) per year.
The Government has confirmed that from 1 July 2012 a higher concessional contribution cap will apply for those aged 50 or more whose superannuation balance is under $500,000. This higher cap amount will be the indexed lower cap amount plus $25,000. For example, for 2012/13 the two concessional caps are expected to be $25,000 and $50,000. These reforms have yet to be legislated as at 15 June.
If the concessional contributions cap is exceeded, the excess amount is taxed at an additional 31.5 per cent on top of the 15 per cent tax paid by the superannuation fund. The excess amount is treated as a non-concessional contribution and therefore will count towards the non-concessional contributions cap.
The Government has announced that from 1 July 2011 excess concessional contributions of up to $10,000 (not indexed) will be refundable for first time breaches in respect of 2011/12 or later years. The excess amount will be taxable at personal marginal tax rates rather than an effective rate of 46.5 per cent. This announcement was made on 10 May 2011, however, as at 15 June 2011 this had not yet become law.
Non-concessional contributions:
The maximum non-concessional contribution allowed per year is $150,000 (in financial year 2011/12). Those under the age of 65 at any time in a financial year can elect to bring forward up to two year’s worth of contributions in order to contribute up to $450,000 over a three year period. The $450,000 ‘bring-forward’ cap will trigger automatically in the first financial year that a member makes non-concessional contributions of more than the annual cap of $150,000. The member would then have up to the end of the third year to use up the remainder of the ‘bring-forward’ cap. Any excess non-concessional contributions are taxed at 46.5 per cent (payable by the superannuation fund), and are additionally taxed in the hands of the member (eg if the member’s marginal tax rate is 46.5 per cent the excess will be taxed at a total rate of 93 per cent).
Capital Gains Tax (CGT) cap:
The CGT cap may apply to all or part of the proceeds of the sale or disposal of small business assets that attract certain CGT concessions.
If you are eligible, you may have the option of contributing the sale proceeds to your SMSF subject to the CGT cap of $1,205,000 (in financial year 2011/12) instead of the regular non-concessional contributions cap. The CGT cap is a lifetime limit. Any amounts that exceed the CGT cap will be counted towards the non-concessional contributions cap. You should seek tax advice if you think this may be relevant for your circumstances.
Rollovers:
Rollovers or transfers from other superannuation funds are generally not subject to contribution caps as these funds are already within the superannuation environment. You should seek tax advice if you think this may be relevant for your circumstances.
How can members access benefits from an SMSF?
Superannuation is subject to strict preservation rules, which generally prevent a member from accessing benefits until they have retired after reaching preservation age (ie age 55 for someone born before 1 July 1960). Once a member has retired, they can access benefits as either a pension or lump sum, or combination of both. In some cases a member may be able to access benefits before retirement, for example, as a Transition to Retirement (TTR) pension if they have reached preservation age, or in certain other circumstances such as permanent incapacity.
Once a member has met a suitable condition of release, they may draw a lump sum or commence an account-based pension from the SMSF.
What is ‘preservation age’?
A member’s preservation age depends on when they were born.
Source: ATO Guide to superannuation for individuals – overview, http://www.ato.gov.au, correct as at 15 June 2011
For the purpose of accessing superannuation benefits, what does ‘retired’ mean?
For a member who has reached their preservation age but is still under 60, they must have ceased an arrangement of gainful employment and satisfied the trustee of the fund that they intend to never again be employed for 10 hours or more each week.
For a member who has reached age 60, they must have either:
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ceased an arrangement of gainful employment on or after reaching age 60 or
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ceased an arrangement of gainful employment and satisfied the trustee of the fund that they intend to never again be employed for 10 hours or more each week.
Once a member reaches age 65, there is no requirement to have ceased work in order to access benefits.
What is an account-based pension?
An account-based pension is like a personal retirement income account operating in a superannuation fund. The member will receive regular income payments, while at the same time their account will earn investment income.
An account-based pension generally allows a member to:
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choose the frequency of payments (either monthly, quarterly or annually)
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choose the amount of payments (subject to a minimum annual limit)
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withdraw lump sums whenever required.
Note that there are some special restrictions if the pension is a Transition to Retirement (TTR) pension (see What is a Transition to Retirement pension?)
Account-based pensions are tax effective. The investment earnings (income and gains) on the assets held to support the pension are generally tax free in the fund.
No tax applies to pension payments or lump sums paid to a member aged 60 or more. Tax may be payable on payments made to members aged between preservation age and 59, less a 15 per cent tax offset on the taxable component of the payments.
What is a Transition to Retirement pension?
Members who have reached their preservation age but not yet retired may commence a type of account-based pension, subject to certain restrictions, which is known as a Transition to Retirement (TTR) pension. This type of pension was introduced to assist members who are in a 'transition phase' to retirement, where they may still be doing some work (part time or full time) but wish to start drawing on their superannuation savings prior to full retirement. It can also allow members to take advantage of tax-effective pension income while contributing to superannuation.
TTR pensions are subject to the same minimum payment requirements as a normal account-based pension. They are also subject to a maximum annual payment limit calculated by multiplying the account balance of the pension on 1 July each financial year (or the day the pension was commenced in the first financial year) by 10 per cent.
TTR pensions are also generally non-commutable which means that a member is generally unable to access the capital supporting the pension until they have met a full condition of release.
Note that once a member retires, they can convert this to a normal account-based pension.
What is an indication of the costs involved in running an SMSF compared to a retail super fund?
Normally, the main cost for an SMSF relates to the annual administration requirements of the fund, which include an annual audit that must be completed by a qualified accountant.
Other costs may include, among others:
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legal services, such as preparation of trust documents
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financial advice on investments or an investment strategy, or advice on how best to structure an SMSF for the full tax benefits available.
How much an SMSF will cost to run will vary depending on a number of factors including the level of complexity of investments, and how much advice the SMSF trustees decide they would like to assist them in managing the fund.
In comparison, retail super funds tend to charge fees as a percentage of the total assets a member has invested in the fund.
An accountant or financial adviser may be able to advise further on the costs associated with running an SMSF.
What level of investment makes an SMSF cost effective?
There are a large number of variables (eg cost of advice, administration fees and investment management fees) that will differ from one SMSF to the next. As a result, any decision involving cost should be based on individual circumstances and bearing in mind that the fees for retail super funds tend to be charged as a percentage of the member’s assets.
if you are interested in setting up an SMSF, it's important to discuss this with your financial adviser. If you do not have an adviser and would like to speak to one, you can contact a Macquarie Private Wealth adviser who, for a one-off fee, can give you specific advice on setting up an SMSF. To discuss this offer, call us today on 1800 184 207 (Monday to Friday 8am to 6pm Sydney time).
What sorts of responsibilities will I take on if I decide to set up my own SMSF?
If you set up an SMSF, you take on the role of being a trustee for the fund, or a director of a company that is a trustee of the fund (a corporate trustee). SMSF trustees or directors are ultimately responsible for ensuring the SMSF is administered in line with superannuation and tax laws and regulatory requirements. Ongoing SMSF administration may involve, among other responsibilities:
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appointing an auditor
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fund income tax and regulatory returns
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ensuring acceptance of contributions that meet regulations
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notifying the Australian Tax Office (ATO) of fund detail changes
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record keeping
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rollovers in and out of the fund
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making benefit payments in compliance with preservation rules.
While this may seem daunting, your accountant or financial adviser may be able to assist you in meeting these obligations. If you would like to find out more about Macquarie’s SMSF solutions, speak to your financial adviser, if you have one, or call us today on 1800 184 207 (Monday to Friday 8am to 6pm Sydney time).
Where can I go for advice about setting up and managing an SMSF?
An accountant or financial adviser may be able to assist you in setting up and managing an SMSF.
If you would like to find out how Macquarie can assist you in managing an SMSF, speak to your financial adviser, if you have one, or call us today on 1800 184 207 (Monday to Friday 8am to 6pm Sydney time).
What experience does Macquarie have in servicing SMSFs?
Macquarie has been providing services to SMSFs for more than 20 years. Today, 1 in 4 SMSFs in Australia use the Macquarie Cash Management Account to manage their SMSF cashflow (Source: Macquarie Bank Limited data, ATO Self-Managed Super Fund Statistical Report,
http://www.ato.gov.au , correct as at March 2011).
How can I apply for Macquarie products for an SMSF?
If you would like to apply for Macquarie products for an SMSF, speak to your financial adviser, if you have one, or call us today on 1800 184 207 (Monday to Friday 8am to 6pm Sydney time).
Cash products for an SMSF
What Macquarie cash products are available for an SMSF?
Macquarie Cash Management Account (CMA)
Every SMSF needs somewhere to hold their cash. With the Macquarie CMA at the heart of your SMSF, you can save time on administration and easily act on investment opportunities – which is why one in every four SMSFs use the Macquarie CMA (Source: Macquarie Bank Limited data, ATO Self-Managed Super Fund Statistical Report, http://www.ato.gov.au , correct as at March 2011). As well as offering a competitive interest rate, the Macquarie CMA provides detailed reporting that can be used in tracking inflows and outflows from your SMSF.
In addition, if you choose, you can give your accountant, financial adviser or administrator access to view your Macquarie CMA, which can assist in areas such as the annual audit of an SMSF, as well as ongoing management of the fund. For the current Macquarie CMA interest rate and for more information click here .
Macquarie Bank Term Deposits
Macquarie also offers Term Deposits for those looking to lock in a competitive interest rate for the cash in their SMSF, for terms up to 24 months. For the current Macquarie Bank Term Deposit interest rates and for more information click here.
How to apply
To apply for a Macquarie CMA and/or Macquarie Bank Term Deposit for your SMSF, speak to your financial adviser, if you have one, or call us today on 1800 184 207 (Monday to Friday 8am to 6pm Sydney time).
How can I use the Macquarie Cash Management Account (CMA) as a cash hub for an SMSF?
The Macquarie CMA gives you all the tools you need to effectively manage the cashflow for your SMSF. Consolidating your cash into one central cash hub, that receives flows into your SMSF and lets you make payments out, can help you monitor and manage your SMSF more efficiently. The diagram below summarises how this can work:
With the Macquarie CMA, all your transactions appear on consolidated statements that provide a detailed narrative for each transaction. Accounting, tax returns and long-term record keeping are all much easier.
What are some considerations in regard to allocating assets to cash as part of an SMSF investment strategy?
According to data from the ATO, 26 per cent of SMSF assets were invested in cash or term deposits as at March 2011 (Source: ATO Self-Managed Super Fund Statistical Report, http://www.ato.gov.au, correct as at March 2011).
The ATO suggests that the following are some key points to bear in mind when considering asset allocation in an SMSF (Source: Guide to self-managed superannuation funds, http://www.ato.gov.au/, correct as at 15 June 2011):
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diversification (investing in a range of assets and asset classes)
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the risk and likely return from investments, to maximise member returns
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the liquidity of the fund's assets (how easily they can be converted to cash to meet fund expenses)
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the fund's ability to pay benefits when members retire and other costs the fund incurs
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the members' needs and circumstances (for example, their ages and retirement needs).
You should seek independent professional advice before making any financial decisions.
How can I apply for a Macquarie CMA and/or Macquarie Bank Term Deposit?
To apply for a Macquarie CMA and/or Macquarie Bank Term Deposit, speak to your financial adviser or call us today on 1800 184 207 (Monday to Friday 8am to 6pm Sydney time).
What is Macquarie’s expertise in cash products?
Macquarie is a market leader in cash management. Our cash management solutions are used by more than 400,000 investors and more than 10,000 financial advisers. Macquarie has built this position through exceptional service and innovative features and functionality.
Macquarie life insurance through an SMSF
What is Macquarie Life Active?
Macquarie Life Active is an all-in-one insurance package that provides lump sum cover not only for death and terminal illness but also for a broad range of health events (from accidents and injuries to long-term illnesses and very serious conditions like heart attack, stroke, cancer, digestive conditions, severe depression, back disorders and many others). Clients also have the option to add Income Cover, Child Cover or Additional Death Cover if required, at an additional premium.
Macquarie Life Active is a life insurance product that is unique in the Australian market and has won Best Life Insurance Product of the Year by Australian Banking & Finance Magazine, and Best Value for Money by Your Money Magazine in 2010.
For more information on Macquarie Life Active click here.
To apply for Macquarie Life Active through your SMSF, speak to your financial adviser or call us today on 1800 184 207 (Monday to Friday 8am to 6pm Sydney time).
Can I have Macquarie Life Active through my SMSF?
Yes. While some parts of Macquarie Life Active cover will not be issued to be held within superannuation (in accordance with the Superannuation Industry (Supervision) Act), if you choose to apply for Macquarie Life Active through your SMSF, two policies will be issued (subject to approval criteria):
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a superannuation policy which will be owned by the trustee of the SMSF; and
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a separate non-superannuation policy which will provide the cover that cannot be issued under a superannuation policy.
If a benefit is payable under the superannuation policy the benefit will be paid to the trustee of the SMSF. The release of the benefit from the fund will then be subject to the governing rules of the fund and related taxation laws current at the time of payment.
Alternatively, if you are seeking only Death or Income Cover (no health event cover) then Macquarie Life FutureWise can allow 100 per cent of your premium to be funded from your SMSF. For more information on Macquarie Life FutureWise click here. To apply for Macquarie Life FutureWise through your SMSF, speak to your financial adviser, if you have one, or call us today on 1800 184 207 (Monday to Friday 8am to 6pm Sydney time).
How does Macquarie Life Active work within an SMSF?
Macquarie Life Active allows insurance to be placed through superannuation through a structure called superannuation optimiser, whereby the cover is separated into two parts. The first part is held under a policy owned by the trustee of a superannuation fund (the superannuation policy) and the second part is held under a policy owned by the insured person who is a member of the superannuation fund (non-superannuation policy).
The superannuation policy includes cover for death, terminal illness and some health events. The balance of cover for health events not covered under the superannuation policy is held under the non-superannuation policy.
Claims are first assessed under the superannuation policy and are paid under that policy if a definition is met. If a benefit is not payable under the superannuation policy, the claim is then assessed under the non-superannuation policy and paid under that policy if a definition is met. The two policies are linked and claims under one policy reduce the remaining amount of cover available for future claims under both policies.
If a benefit becomes payable under Macquarie Life Active cover held within superannuation, it will be paid to the trustee of the superannuation fund, who must distribute the benefit in accordance with the governing rules of the superannuation plan and superannuation laws current at the time of payment.
See the Macquarie Life Active Product Disclosure Statement for full information . You should read the policy ownership section of the reference document and seek financial advice before you apply if you are considering taking insurance cover within superannuation.
How do I apply for Macquarie Life Active?
To apply for Macquarie Life Active through your SMSF, speak to your financial adviser, if you have one, or call us today on 1800 184 207 (Monday to Friday 8am to 6pm Sydney time).
Investing in shares through an SMSF
What are Exchange Traded Funds (ETFs)?
Exchange Traded Funds (ETFs) are listed investment funds which are traded on the ASX, much like shares, and offer access to indices, commodities and bonds. The benefits of ETFs for SMSFs are diversification, getting exposure to different asset classes, access to expert funds managers, liquidity and generally lower costs than traditional funds. ETFs are a fast growing instrument and through Macquarie Prime you can trade and hold them on the same account as your shares and cash investments.
What are franking credits?
Franking credits are included with many dividend payments, as advised by the company issuing the dividend. Franking credits represent tax already paid by the company, enabling you to include the franking credits in your tax return and potentially receive a tax benefit. Any franking credits you receive will be issued directly to you by the share registry.
What is a stop loss?
A stop loss can be set when you place an order, or amended once your order is in the market. A stop loss enables you to set a price at which an order will be automatically placed to close out your position.
For example, if you buy shares in XYZ Company at $20, you can set a stop loss at $19, giving you the ability to profit from any upside while limiting your exposure on the downside. Stop loss orders are free and are popular as they can protect your investments.
A common shortcoming of stop loss orders, however, is that they do not offer complete protection in cases where the market moves suddenly stop loss orders will sell at the prevailing market price, but this may be beyond the limit you have set, depending on market volatility. For example, events such as the Japanese earthquake and tsunami in early 2011 can trigger a high level of volatility, resulting in markets opening significantly lower than their previous close.
What is a Guaranteed Stop Loss (GSL)?
Like a stop loss, a guaranteed stop loss is a risk management tool which protects your investments. The difference is that a guaranteed stop loss gives you certainty of being protected at your chosen price, regardless of volatility in the market.
For example, if you bought Company XYZ at $20, added a guaranteed stop loss at $19 and the market opens the next day at $17, your position will be closed out at $19.00. A normal stop loss order would be triggered at $19 but would trade at the prevailing market price of $17. In this example a GSL would save you $2 per share.
The cost of GSL protection will be calculated and displayed on the ‘Order Pad’ when placing a trade on the Macquarie Prime platform.
How can I get exposure to the share market for an SMSF investment strategy?
If you have a financial adviser, you can talk to them about the various options or alternatively an option is to invest directly through Macquarie Prime, which can be used to buy and sell shares and Exchange Traded Funds (ETFs). Integrated stop loss and guaranteed stop loss may also be used to protect positions, potentially enabling you to benefit from rising share prices and dividend income while protecting your investments against a fall in share price. Macquarie Prime also offers an integrated cash account with a competitive rate so that you can earn interest on your funds while you are not trading.
What is Macquarie Prime?
Macquarie Prime is a trading platform which offers share trading, ETFs (Exchange Traded Funds), an integrated cash account and risk management features such as stop loss. Macquarie Prime can enable SMSFs to hold shares, diversify across commodities and indices via ETFs and earn a competitive interest rate on cash, all in the one platform.
What reporting is available on Macquarie Prime?
Macquarie Prime offers easy to read account statements, detailing each of your buy and sell transactions. This statement can also be downloaded into Microsoft Excel. In addition we email contract notes and statements to you, making reporting and tax time easy for you.
Will I receive dividends on Macquarie Prime?
Yes, you will receive dividends on any investments you hold that pay a dividend and this will be paid directly from the share registry into your account. You can also elect to have your dividends automatically paid into your Prime cash account, saving you paperwork and ensuring your dividend income is available for you to reinvest in the market or earn competitive interest on your cash account.
How can I open a Macquarie Prime account?
Macquarie Prime has a simple application process and our experienced service team are here to make the process as easy as possible for you. To apply for Macquarie Prime for your SMSF, speak to your financial adviser, if you have one, or call us today on 1800 184 207 (Monday to Friday 8am to 6pm Sydney time).
Managed funds for an SMSF
What steps are involved in investing in managed funds?
Step 1: Look at your finances to establish how much you can afford to invest.
Step 2: Learn the basics. Understand what a managed fund is, the benefits of investing, what diversification is, and what asset classes are.
Step 3: Identify your attitude to risk. This will help you to determine your investor profile, and which funds suit you.
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A conservative investor focuses on low risk assets such as fixed interest and bonds.
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A balanced investor will invest in a mix of asset classes from cash to Australian and international equities.
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A growth focused investor focuses on higher risk investments such as Australian and international equities.
Step 4: Consider the risks and costs involved.
Step 5: Decide whether you need advice.
Step 6: Choose a fund: Choose an investment fund that suits your attitude to risk, and your investment goals.
If you are interested in finding out more about Macquarie’s managed funds offering, Macquarie Professional Series, as part of your SMSF, speak to your financial adviser if you have one, or call us today on 1800 184 207 (Monday to Friday 8am to 6pm Sydney time).
What is Macquarie Professional Series?
Macquarie has searched through the crowded investment market, and has partnered with investment managers that have a proven strong track record, specialist knowledge and superior investment strategies. Macquarie Professional Series provides:
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flexibility with no fixed or minimum investment period
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no entry or exit fees*
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choice of a range of asset classes
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exposure to investments that you may not be able to access directly.
There are five funds to choose from, with a range of asset classes from Australian equities to global property. By investing in one of the funds in the Macquarie Professional Series, you gain access to both award winning investment management and award winning service.
* Management fees apply and vary between funds.
What investment options are available in Macquarie Professional Series?
There are five investment funds available to choose from, each with a different investment objective and asset allocation as outlined below.
Speak to your financial adviser, if you have one, or call us today on 1800 184 207 (Monday to Friday 8am to 6pm Sydney time) to find out more.
What is the minimum investment for Macquarie Professional Series?
The minimum investment for Macquarie Professional Series is $20,000.
There are no entry or exit fees, and there is no minimum investment period. Management Fees apply and vary between funds.
Can I invest through superannuation?
Yes, you can apply on behalf of your SMSF by applying as a trustee.
How do I apply for Macquarie Professional Series?
To apply for Macquarie Professional Series as part of your SMSF, speak to your financial adviser, if you have one, or call us today on 1800 184 207 (Monday to Friday 8am to 6pm Sydney time).
