• P: 1300 790 110 | E: service@redwoodadvisory.com.au

Important Information

RISKS OF SMSF & REDWOOD

These disclosures are extremely important to read prior to contacting “Redwood” (refer below for details of the Redwood Group). We operate in a regulated environment, we must adhere to the laws and regulations and also present you with the necessary information to assist you with the benefits and risks of Self Managed Superannuation Funds (“SMSF”).

There is a lot be gained when setting up a SMSF! But with great power comes great responsibility. Before setting up a SMSF you must have done your own research and due diligence. The laws pertaining to SMSF’s establishment and accountants changed as of 1 July 2017. As a financial product, SMSF’s have their inherent RISKS that you must be aware of, as Redwood accepts no responsibility in regards to the risks below:

REDWOOD ADVISORY PTY LTD (“Redwood Advisory”) – NO FINANCIAL ADVICE – NO RECCOMENDATION – we are Accountants only!

ABN 291 6155 3591

ACN 291 61553 591

Address: 304 Middleborough Rd Blackburn VIC 3130

No financial advice is provided by Redwood Advisory. Any Financial Advice is provided by Redwood Wealth Pty Ltd (refer below for details).

Redwood Advisory is a streamline accounting and taxation service that offers NO financial advice and does not recommend whether an SMSF is best for your financial situation or your future goals. Redwood Advisory was established in 2012. Without sufficient knowledge regarding the SMSF space, any financial decisions you make may put you at RISK. We strongly advise that you pursue professional advice from a licensed financial adviser to determine the suitability of an SMSF prior to establishing a SMSF.

As it is the responsibility of the Trustee (you) for all aspects of the SMSF, you will be legally responsible for any financials decisions made. As such, Redwood Advisory operates on execution only basis or no advice, meaning that Redwood assumes that you have undergone sufficient research and/or has sought out professional advice. The decision to set up a SMSF is on you!

ESSIENTIAL MANAGEMENT – YOUR SKILLS – YOUR TIME

Compliance is the key in managing your SMSF. You as  Trustee, will be ultimately to be responsible for making investment decisions and ensuring you comply with all legal obligations such as timely and accurate preparation and lodgement of annual tax returns. Documents and records of the SMSF should be kept safe at all times and any transactions within the SMSF is for the sole purpose of providing for your retirement. Compliance with this level of scrutiny, does not come naturally to most people, so it imperative that you have an appropriate level of SKILL and that you allocate yourself enough TIME to manage your SMSF. If you are uncertain with any aspect of administering a SMSF, Redwood Advisory can help guide you. However compliance is your responsibility.

SETTING UP MINIMUM BALANCES AND SMSF OVERHEADS

When establishing your SMSF, you must ensure that you have sufficient balance to not only cover your SMSF OVERHEADS but enough so that your SMSF is functional and worthwhile. “They say, $200,000” is the SMSF balance benchmark to run an SMSF, however, this should be considered case by case and should be tailored to your financial objectives, as such, there is no legislation as to what your minimum balance should be. However, we must emphasise that you consider your OVERHEADS which may consist of accounting fees, ATO Supervisory Levy, Actuarial Fees, Lawyer Fees, Company Fees and so on.

Whether an SMSF is right for you, boils down to your decisions -Always contemplate your Costs VS. Benefits in establishing your SMSF.

Australian Taxation Office (“ATO”) and Australian Securities Investments Commission (“ASIC”) guidance on SMSFs

Refer to the following link for information from ASIC on SMSF https://www.moneysmart.gov.au/superannuation-and-retirement/self-managed-super-fund-smsf

Guidance for advisers is included here http://asic.gov.au/regulatory-resources/financial-services/giving-financial-product-advice/advice-on-self-managed-superannuation-funds-disclosure-of-risks/#access-to-complaints-mechanisms

Refer to the following link for information from the ATO on SMSF

https://www.ato.gov.au/uploadedfiles/content/spr/downloads/spr46427n11032.pdf

Here a number of links on the ATO website with a variety of important and useful pieces of info to assist you in establishing and running your SMSF

https://www.ato.gov.au/Super/Self-managed-super-funds/

Individual links are included below:

How a SMSF is regulated smsf-regulations
Winding up a SMSF – winding-up-a-smsf
Running a SMSF – running-a-smsf
Setting up a SMSF – setting-up-a-smsf
Thinking about self-managed super – thinking-about-smsf

INVESTMENT RISK

The Trustees hold the power in regards to investment decisions in the SMSF and along with it the RISKS. Thus, careful consideration and due diligence must be applied when making any financial decisions. We at Redwood Advisory do not recommend any particular strategy, however, it is best you consider your age and risk profile so that you may invest in line with your retirement goals. Also consider diversification of investments which means spreading your SMSF portfolio risk over different sectors of the market for better control and stability given market changes. The investment choices you make must comply with the rules of your SMSF Trust Deed and relevant legislation. Visit the ASIC consumer website for more investment tips www.moneysmart.gov.au.

We have attached for your reference a ASIC publication on the importance of advice within an SMSF, this includes the considerations of a adviser and importantly the considerations of the Trustee – http://asic.gov.au/regulatory-resources/financial-services/giving-financial-product-advice/advice-on-self-managed-superannuation-funds-disclosure-of-risks/

Life Insurance – Optional

Given that SMSF’s are created for our retirement future, why not consider “life after death.” Life Insurance can help our family in need, In the case of serious illness or accidents. Usually, industry/retail super fund will offer life insurance at a low cost and on a basic level. The issue with this, is that often these insurance policies will not be catered for your personal needs. It is worthwhile comparing the differences of the COSTS and BENEFITS of these standard insurance policies opposed to a tailored insurance policy.  Redwood Advisory offers a Non Compulsory Insurance service with Redwood WEALTH, which will help you compare insurance premiums with your current superfund and an insurance policy within an SMSF. Redwood WEALTH is an associated company of Redwood Advisory as detailed below.

Government Compensation

ARPA Regulated funds usually covered in the case of fraud and theft, however, SMSF do not have as many options when it comes to these matters. Given this, no government or industry compensations is currently available for SMSFs leaving the trustees/members of the SMSF to self-protect their own retirement interests.

Trustees/Members ultimately have control and bear the responsibility of all investment decisions and management of the SMSF. SMSFs are not prudentially regulated but rather they are subject to compliance regulation of the ATO. Refer to the ATO’s website for more details: https://www.ato.gov.au/Super/Self-managed-super-funds/In-detail/News/

Access to complaint mechanisms

Retail clients should understand that certain dispute resolution mechanisms, such as the Superannuation Complaints Tribunal (SCT), may not be available to SMSFs.

However, the types of disputes and complaints that may arise for SMSF investors may be different from those in an APRA-regulated superannuation fund, and access to other complaints mechanisms may be available to SMSF investors (e.g. the Financial Ombudsman Service Limited or the Credit and Investments Ombudsman).

Appropriateness of different structures

Trustees should consider the most appropriate SMSF structure when establishing an SMSF. Selecting the most appropriate structure (i.e. a corporate or individual trustee structure) can have important tax and succession planning implications for clients. It can also be costly to change structures, ownership of assets and trustees after the SMSF has been established.

REDWOOD ADVISORY & REDWOOD WEALTH

Redwood ADVISORY wants your SMSF journey as stress-free and seamless as possible.  Redwood Advisory offers no personal advice in regards to your financial situation – we are now specialist administrators of SMSFs. Let us makes this crystal clear, Redwood Advisory is “no advice” – we will not consider your personal situation or needs in our discussions and correspondence with you – we will not issue any financial product advice relating to your SMSF – this includes pensions, contributions or SMSF Strategy.

Before setting up an SMSF, it is recommended that you obtain specific financial product advice before making any financial product decisions. If you require financial advice in regards to setting up an SMSF, we can refer you to Redwood WEALTH, a financial planning arm and authorised representative of Dover Financial Advisers Pty Ltd. Redwood Wealth and its Adviser – have a limited authority relating to SMSF’s and are not authorised to recommend shares or managed investments.

Dovers Australian Financial Services Licensee (AFSL No: 307248) ensures Redwood WEALTH operates in compliance with The Corporations Act 2001 and regulates the way in which consumers can be advised about those products. Redwood WEALTH is about protecting you and your future.

Dover is one of Australia’s largest privately owned AFSLs and was recognised as the top privately owned dealer group in 2014 by Money Management Magazine. Dover has more than 350 advisers around Australia, and is estimated to have more than $2,000,000,000 of funds under management. Dover’s unique approach to its advisers means it is growing fast. Good advisers know that good compliance is good practice. Redwood is also focused on compliance. Our Financial Services Guide is included on our website for your reference and will be provided to your immediately once we feel personal advice will be provided to you.


Dover Financial Advisers Pty Ltd
Australian Financial Services Licensee
License No. 30748
ABN. 87 112 139 321
Head Office: 71 Tulip St, Cheltenham VIC 3192

Your Adviser: Ivan Filipovic

Dover Authorised Representative Number 1244358

Redwood Wealth Pty Ltd

Dover Corporate Authorised Representative Number 1244359

Phone: 1300 790 110

304 Middleborough Road Blackburn Melbourne VIC 3130

ABN 17 612 758 826

ACN 612 758 826

A summary – The Redwood Group includes:

Redwood Wealth Pty Ltd T/A Redwood Wealth ABN 17 612 758 826 – refer above for authorisation

Redwood Advisory Pty Ltd T/A Redwood Advisory ABN 291 6155 3591

Redwood Home Loans Pty Ltd ABN 52 604 086 286

Redwood Real Estate Pty Ltd T/A Redwood Property Group ABN 59 604 940 436

Fees and costs of an SMSF

Refer to https://redwoodadvisory.com.au/smsf/fees/ for our fee disclosures. This is to be read in line with our SMSF Risks, Terms and Conditions and Privacy Policy.

SMSF and flat fees can make a huge difference to your ultimate retirement balance.  When you first set up a fund there are a number of fees that your fund will need to incur.  Often SMSF administrators will require you to pay some of these fees by EFT or credit card when you first establish your fund. At Redwood, we will generally pay these fees on your behalf so you’re not out of pocket – or need to reimburse yourself from the SMSF. Once your new SMSF is established and funds from previous superannuation accounts are transferred in, we will debit the SMSF to cover these costs (generally when the SMSF rollover is completed.

Here is a summary of the standard fees associated with establishing an SMSF (https://redwoodadvisory.com.au/smsf/fees/):

  • $518.00 – ATO supervisory levy ($259.00 per year) payable to the ATO.  New funds are required to pay the first two years in advance – refer to
  • $469.00 – Registration of Corporate Trustee Company – this company registration fee is payable to ASIC.
  • $469.00 – Registration of Corporate Trustee Company for Bare Trust Trustee (needed for SMSF buying property) – company registration fee payable to ASIC
  • You will authorize the establish of each company with $1 paid up capital, that is each share is worth $1.
  • The 2 X $469 company fees are included in our fees whereas the $518 is paid from your SMSF once your SMSF return is lodged.

Redwood has been around for a while, and we hope to be profitable and try to charge a fixed fee to cover our costs and fingers crossed we can feed the family at night! Our fees are disclosed here – https://redwoodadvisory.com.au/smsf/fees/

You can compare us to our competitors but we differentiate based on our core values – we are known to assist our clients with a “client first” approach – we serve our clients with ultimate service….a personal touch on all our interactions.

Redwood Group of Companies

Redwood Wealth Pty Ltd T/A Redwood Wealth ABN 17 612 758 826

Redwood Advisory Pty Ltd T/A Redwood Advisory ABN 291 6155 3591

Redwood Home Loans Pty Ltd ABN 52 604 086 286

Redwood Real Estate Pty Ltd T/A Redwood Property Group ABN 59 604 940 436