3 ways to maximise every dollar in your SMSF.

Transcription

1 3 ways to maximise every dollar in your SMSF. We knowhow.

2 Contents. Your super, your way. Once you ve established a Self Managed Super Fund, we have a three-piece DIY Super Solution to help you manage the everyday banking and share trading needs of your fund. So if you like the idea of having control over where your super is invested, here s how to get started. Your super, your way Super, easy. 5 Get underway, straight away. 7 The big picture. 10 Your questions answered. 14 Time to take control. 16 Know what you want for your money and your future? With some expert help from your accountant and Westpac Financial Planner, you can set up a Self Managed Superannuation Fund (SMSF) and make your own investment decisions for your super. Your SMSF could bring you a number of benefits, depending on your circumstances, from controlling where you invest to potentially improving your returns. Of course, with opportunity comes obligation, and you ll need to ensure you: Act in accordance with the conditions of your trust deed Follow ATO regulations and associated legislative obligations Put in the time to manage your fund appropriately Act in the best interests of your fund s members Super decisions. You know first-hand that one of the biggest advantages of managing your own super is that you make the decisions. It s one of the main reasons you have an SMSF or you re thinking about starting one. The biggest challenge is to make sure you get the important decisions right. After all, the decisions you make will determine how much super you have when you retire. Which is why just over 70%* of Australian investors make the decision to receive professional advice when it comes to their SMSF. This is where a Westpac Financial Planner can help you understand your financial situation and build your SMSF investment strategy. *Financial Review Smart Investor Reader Survey, May

3 . Super, easy. Managing your own super shouldn t take a super effort. We ve developed a three-piece DIY Super Solution specifically for SMSFs, so you ll have the ability to concentrate on investing your super, rather than just managing it. Savings account Park your surplus funds between investments No monthly service fees Great interest rates on every dollar Operate and access via your linked Working account Working account An everyday hub account to manage your investments No monthly service fees Tiered interest rate Online banking Personal or Business telephone banking Branch and cheque access to funds Westpac Online Investing Trade from $19.95 when linked to your Working account Access shares, Options, Warrants and more Trade online, over the phone or via the mobile app Get the latest research and analysis from Morningstar, Westpac, BT and more Advanced charts using live market data No monthly service fees How does the DIY Super Solution work? Your three accounts work together to meet the everyday needs of your SMSF. Transact from your Working account, including online trades Save surplus funds at a great interest rate, by depositing them in your Savings account Trade shares and other securities with Westpac Online Investing Working account*. With your Working account you can be earning interest on your funds, and still have the ability to access funds on a day to day basis. The account acts as a hub for your SMSF transactions. You can transfer funds directly to and from your Westpac DIY Super Savings and Westpac Online Investing accounts; and use it to manage your other super investments. * If you close your Working account, you will need to close your linked Savings account and, if applicable, arrange an alternative trading account for your Westpac Online Investing account. 4 5

4 Get underway, straight away. Why have a Savings account and a Working account? As an investor, there ll be times when you have surplus cash between investments, for example. Your Westpac DIY Super Savings account lets you make the most of this money by attracting great interest rates until you need it again. Once you ve established your SMSF in conjunction with an SMSF specialist, you can open the DIY Super Solution: Online at westpac.com.au/smsf At any Westpac branch Or by calling Accessing funds from your Super Savings account. When you want to invest the funds in your Westpac DIY Super Savings account elsewhere, you simply transfer the amount you need to your Working account then make your transactions from there. Westpac Online Investing. Finally, Westpac Online Investing gives you the tools to invest in a range of securities with great rates, convenient access, and all the latest data you need to help you make your decisions. When you come to see us or go online, remember you ll need: Your current trust deed The ABN for your trust The Tax File Number for your super fund Two forms of identification Cash Fixed Wrap Income Residential Property SMSF Self Managed Super Fund Financial Advice Commercial Property Education Equities Fund Insurance Administration To open and operate a Savings account, you must hold a Working account and have the accounts linked. Fees may be applied on the Working account. 6 7 For further information on the risks, you should consider the disclosure documents relating to each product and service (where applicable). 8

5 The big picture. Once you have your DIY Super Solution set up to meet the everyday banking and share trading needs of your SMSF, you may want to consider the other products and services Westpac offers that might support your investment strategy. Term Deposits. If you re attracted to the certainty of a fixed investment return for a fixed term, Westpac Term Deposits could be just what you re looking for. Our interest rates are competitive, and you could have your interest earnings paid directly into your Working account. We can even help show you how you can receive a regular income from your Term Deposits. Super Fund Property Loan. Superannuation legislation lets you borrow to invest, as long as certain conditions are met. So your SMSF may be able to invest in residential and commercial investment property with the help of our Super Fund Property Loan. Insurance products. Building your wealth is one thing, protecting it is something else. With our portfolio of life insurance options, from death benefits to income protection, we have the knowhow to help keep you secure. Just ask your Westpac Financial Planner about it. Cash DIY Super Solution A suite of three products including a DIY Super Working account, DIY Super Savings account and Westpac Online Investing to help you manage the everyday banking and share trading needs of your SMSF. Fixed Income Term Deposit Lock away SMSF funds at a guaranteed rate for a selected term of your choice. Residential Property Commercial Property Coupon Select Deposit A tailored term deposit that lets you choose the frequency of interest payments, the start date and whether to receive fixed rate or floating rate interest payments or a combination of both. CPI Plus Deposit A tailored term deposit that pays a guaranteed fixed rate above the inflation rate, e.g. CPI + 3.5% Inflation Linked Deposit Variable Rate Property Loan Fixed Rate Property Loan Bank Bill Business Loan/ Business Loan A tailored term deposit that features an interest rate which is directly linked to inflation. The interest rate increases with inflation, protecting the real value of your interest income. Funds the purchase of an investment property through a limited recourse loan. Funds the purchase of a business or commercial property through a limited recourse loan, with the option of a fixed or variable interest rate. Equities BT Managed Accounts Managed Accounts can provide SMSF trustees with direct exposure to a professionally managed portfolio of Australian shares, listed property and managed funds. All administration and comprehensive tax reporting is performed by a team of experts. Self Funding Instalment (SFI) Warrants Westpac Online Investing An ASX listed investment that lets you borrow to invest in the sharemarket within an SMSF without margin calls. A quick and cost effective way to invest online in shares, Options, Warrants, ETFs, managed funds, IPOs and more. Insurance Life Insurance Access Death Cover, Total and Permanent Disability Cover and Salary Continuance Insurance via your SMSF. Wrap BT Portfolio Wrap A single point of access to a range of investment options such as managed funds, term deposits, ASX listed securities and insurance. Financial Advice Westpac Financial Planners Westpac has qualified Financial Planners trained and accredited to advise on SMSFs. Education Davidson Institute Westpac s Davidson Institute provides financial and business education courses, seminars and online learning for SMSF trustees, designed to improve your financial knowhow. Fund Administration Westpac Alliances Westpac has informed alliances with professional, specialist administration firms that can assist you with the running and compliance obligations of your SMSF

6 Get the complete picture with Westpac. Your questions answered. Q. How do I check my DIY Super account balances? A. You can check your account balances at any time simply: Login to Online Banking at westpac.com.au Call us on (or if you re a Business customer) Visit any Westpac branch Q. How s my interest calculated? A. Interest is calculated daily and paid monthly. Your DIY Super Working account pays tiered rates based on your account balance, while your DIY Super Savings account pays a flat rate on the full balance. Q. Are there minimum or maximum balance requirements? A. No you can deposit and hold as much or as little as you like in your Working and Savings accounts. Q. How often will I receive statements? A. You ll get quarterly statements for both your Westpac DIY Super Working and Savings accounts. You can also select e-statements if you re happy to receive your statements electronically. Q. Are there any fees or charges on the accounts? A. There are no monthly account service fees for the Solution. Fees may apply for some transactions though. Please see our booklet, Deposit Accounts for Personal and Self Managed Super Customers Terms and Conditions for details. Things you should know: Information is current as at 18 April This information provides an overview or summary only and it should not be considered a comprehensive statement on any matter or relied upon as such. This information does not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness having regard to these factors before acting on it. You should seek independent financial, legal and tax advice before acting on this information. This brochure does not constitute an offer, or a solicitation of an offer, to subscribe for or purchase any securities or other financial instrument; is not an invitation to invest; is not an offer for finance; does not constitute an offer, inducement or solicitation to enter a legally binding contract; and is not to be construed as an indication or prediction of future results. Any reference to taxation matters is a general statement only and should only be used as a guide. It does not constitute tax advice and is based on current tax laws and their interpretation. Westpac and its financial planners are not qualified to give tax advice. The individual situation of investors may differ and investors should seek independent professional tax advice on any taxation matters. The Working and Savings accounts are issued by Westpac Banking Corporation ABN Australian Credit Licence and AFSL (Westpac), an authorised deposit-taking institution under the Banking Act 1959 (Cth). Westpac Online Investing through Westpac Securities Limited ABN AFSL is a service provided by Australian Exchange Ltd ABN AFSL , a participant of the ASX Group. The DIY Super Working Account, DIY Super Savings Account, Westpac Online Investing, Westpac Self Funding Instalments, Term Deposits, Coupon Select Deposits, CPI Plus Deposits, Inflation Linked Deposits and Term Deposit Account are issued by Westpac. Managed Accounts products and services are offered by Westpac RE Limited ABN AFSL Westpac SMSF Property Loan (retail) and SMSF Business Loan and SMSF Bank Bill Business Loan Normal credit criteria and fees and charges apply, credit provider is Westpac. You should consider the disclosure documents and terms and conditions relating to each of these products before making any decision to invest, as well as Westpac s Financial Services Guide. These are available at westpac.com.au or by calling BT Protection Plans are issued by Westpac Life Insurance Services Limited ABN AFSL (Insurer). The issuer for all products, except for Term Life as Superannuation and Policies paid via SuperWrap, is the Insurer. BT Portfolio Services Ltd ABN (BTPS) operates BT Portfolio Wrap (Wrap). Westpac is not responsible for bringing Wrap to you. Its role is limited to distributor only. An IDPS Guide is available for Wrap and can be obtained from your Westpac Financial Planner. You should obtain and consider the IDPS Guide before deciding whether to acquire, continue to hold or dispose of interests in Wrap. BTPS is a subsidiary of Westpac. Apart from any interest investors may have in underlying bank accounts held at the Bank through a Wrap Cash Account or in Westpac securities acquired through Wrap, an investment in, or acquired using, Wrap is not an investment in, deposit with or any other liability of Westpac or any other company in the Westpac Group. These investments are subject to investment risk, including possible delays in repayment of withdrawal proceeds and loss of income and principal invested. Westpac and its related entities do not stand behind or otherwise guarantee the capital value or investment performance of any investments in, or acquired through, Wrap. Fees and charges apply. Full details of terms and conditions are available on request. Westpac Financial Planners are representatives of Westpac Westpac Banking Corporation ABN Australian Credit Licence and AFSL

7 Open a DIY Super Solution today. Ask at your local branch Call Visit westpac.com.au/smsf You don t have to know it all. Westpac Financial Planners have the knowhow to help you develop a long-term strategy to suit your SMSF. So you can concentrate on your super returns for now, and know you ve got a sound plan for tomorrow. To talk to a Westpac Financial Planner, call Want to ask about Westpac Online Investing? Speak to our specialists on STOCKCODE (03/12) WRI0071