If you’re a small and medium enterprise, you’ll often hear people say they don’t need to worry about putting money into super. Our principal financial adviser, Darren Johns, was on 2UE’s Talking Lifestyles with David Koch discussing the importance of having an SMSF for small business owners. Many business owners say they rely on the eventual sale of the business to fund their retirement, which is a worrying strategy. So why should business owners consider an SMSF?
Depending on the structure of your business and how you are ’employed’ by your business, business owners often aren’t required to pay themselves superannuation. But no matter how you structure your business, it nearly always makes sense to put money into superannuation from Day 1.
Some of the superannuation options available for SME (Small and Medium Enterprises) owners include:
- Making contributions into a retail or industry superannuation fund – you don’t have to be an employee to do this and the business may get a tax deduction.
- Establish an SMSF (Self Managed Super Fund) – this appeals to many small business owners and certainly starts to make sense from a cost perspective when you have upwards of $250,000 in superannuation.
If you are considering starting up an SMSF, be sure to listen below for more information, including the advantages and disadvantages of having an SMSF.
https://omny.fm/shows/weekend-lifestyle/why-business-owners-should-consider-a-smsf
Visit our SMSF Advice section to learn more about our service.
If you would like to speak to us about SME SMSFs, please feel free to give us a call on 02 9913 9995. We are located in Narrabeen on the Northern Beaches of Sydney.
Disclaimer: This publication has been prepared for general information purposes only. It is not specific advice to any particular person. You should consult an authorised Align Financial adviser before making financial decisions.
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