Case study: Simplify managing your SMSF


How using a cash management account can create simpler accounting

The number of self managed super funds (SMSF) has tripled during the last six years. By 2013, Australians had $506 billion invested through SMSFs1. SMSF trustees are increasingly recognising the importance of cash in funds portfolios. Cash now accounts for 28 per cent of SMSF assets2.

While an SMSF allows investors greater control of their super investments and potentially greater flexibility, SMSF management can be time consuming. A cash management account can be a great companion to an SMSF. In the example case study below, a cash management account provided a couple with a single point from which they were able to keep track of all their payments and income, along with clear online reporting.

While an SMSF allows investors greater control of their super investments and potentially greater flexibility, managing one can be time consuming.

Case study

Laura and Gerry, both in their mid forties with an interest in property investment, owned their own home in the suburbs and a city apartment investment property. Wanting to expand their property portfolio and with a need to access more equity, they took the advice of an adviser and set-up an SMSF. They were able to roll over their existing funds of $300,000 into the SMSF.

Once their SMSF was set-up, they spoke to their adviser and determined they had $160,000 available as a deposit for a new investment property with a purchase price of $400,000. They then sought an SMSF property loan to cover the remaining 60% of the property cost. To help administer their SMSF and keep track of cash flow, they decided to set-up a cash management account to function as a hub where they could receive rent, SMSF contributions, interest and dividends, and from where they could pay property expenses.

The cash management account lets them see their available balance and, if using a Macquarie Cash Management Account they can access up to 10 years of statements on a single online screen. With the ability to categorise payments, it allows them to access detailed reporting, making tax time easier. It makes the SMSF more manageable so Laura and Gerry are able to spend their time studying the property market, rather than tracking account information.

To find out more about how a Macquarie Cash Management Account can help with your SMSF, call 13 62 00 to speak with a Macquarie specialist.

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