Setting Up Your SMSF and Investing in Cryptocurrency with SMSF Wizard: A Simple Guide
More Australians are taking control of their superannuation, opting for Self-Managed Super Funds (SMSFs) as a way to personalise their investment strategy. With SMSF Wizard, the process of setting up an SMSF and investing in cryptocurrency is streamlined, straightforward, and hassle-free. Let’s walk through the process of getting started and how you can roll over your super to invest in cryptocurrency.
Step 1: Deciding to Take Control of Your Superannuation
Deciding to manage your superannuation through an SMSF gives you the flexibility to tailor your investments based on your preferences. Whether you are looking to diversify into assets like property, shares, or cryptocurrency, an SMSF allows you to do so.
With SMSF Wizard, you have the freedom to decide how much of your superannuation you want to take control of. You can have both an SMSF and a traditional super fund at the same time. This means you can start small and transition more funds into your SMSF over time, giving you full control over your financial future.
Step 2: Setting Up Your SMSF with SMSF Wizard
Once you’ve decided to take control of your super, SMSF Wizard will handle the setup process for you from start to finish. Here’s how it works:
1. Trustee Setup
SMSF Wizard will register a special-purpose company to act as the trustee of your SMSF. Every SMSF requires a trustee, and in this case, the company acts as the legal entity that holds the SMSF’s assets, including any cryptocurrency investments.
2. Document Drafting
We draft all necessary legal documents required to set up your SMSF. These documents include the trust deed and various compliance forms that ensure your fund meets Australian legal and tax obligations.
3. Applying for TFN and ABN
SMSF Wizard will apply for a Tax File Number (TFN) and an Australian Business Number (ABN) for your SMSF. The TFN and ABN are generally provided instantly, which is a crucial step in allowing your SMSF to operate legally.
4. Obtaining Compliance Status
SMSF Wizard also handles the application for compliance status for your SMSF. This process typically takes about two weeks, during which your SMSF will be officially recognized as complying with the Australian Tax Office (ATO) rules.
Step 3: Rollover of Superannuation and Setting Up Accounts
Once your SMSF has its TFN, ABN, and compliance status, it’s time to transfer your existing super into your SMSF and set up the necessary accounts to invest in cryptocurrency.
1. Setting Up a Bank Account
SMSF Wizard will help you set up a dedicated bank account for your SMSF. This account will hold your superannuation contributions and be used for all investment transactions.
2. Rolling Over Existing Superannuation
After the bank account is set up, we’ll assist you in contacting your existing super fund to roll over your superannuation into your SMSF. This ensures that you have the funds available to start investing in cryptocurrency.
Step 4: Investing in Cryptocurrency
Now that your SMSF is fully operational and your superannuation is rolled over, it’s time to start investing in cryptocurrency. SMSF Wizard will guide you through the setup of a cryptocurrency broking account in the name of your SMSF.
Important Cryptocurrency Investment Rules for SMSFs:
– Invest in the Name of the SMSF: All cryptocurrency investments must be made in the name of the SMSF, not in your personal name. This ensures that the SMSF retains ownership and complies with Australian SMSF regulations.
– The Sole Purpose Test: The primary objective of your SMSF must always be to provide retirement benefits for its members. This is known as the Sole Purpose Test, and it applies to all investments made by your SMSF, including cryptocurrency. You cannot use SMSF funds for personal benefit before retirement (e.g., purchasing crypto for personal use or enjoyment). Every investment must meet the test of being solely for the purpose of providing retirement benefits to fund members.
– Complying with ATO Guidelines: SMSF Wizard ensures that all investments comply with Australian laws regarding SMSFs and cryptocurrency investments. The ATO has strict guidelines, and we ensure that your SMSF meets these to avoid any compliance issues. This protects your fund and its assets.
Step 5: Growing Your Crypto Portfolio
Once your SMSF is set up, your cryptocurrency broking account is operational, and your initial investment is made, you can begin growing your crypto portfolio.
You also have the option of setting up direct contributions from your employer into your SMSF, allowing your crypto investments to grow alongside regular superannuation contributions. This is an excellent way to continuously build your SMSF and ensure a diversified retirement portfolio.
Why Choose SMSF Wizard?
SMSF Wizard is a “done-for-you” service. We handle the entire process, from the setup of your SMSF to the rollover of your superannuation and the creation of your cryptocurrency broking account. All you need to do is sign a few documents and provide the required information, and we take care of the rest.
Fast Turnaround
From start to finish, the entire process takes approximately four weeks. This includes the setup of your SMSF, the application for compliance status, the transfer of your superannuation, and the setup of your cryptocurrency accounts.
Hassle-Free Process
With SMSF Wizard, you don’t need to worry about the technicalities of SMSF setup or compliance. We manage all legal and administrative tasks, allowing you to focus on your investment strategy.
Expert Guidance
Our team of SMSF experts ensures that every step of the process is handled professionally and complies with all regulatory requirements.
Conclusion
Setting up an SMSF and investing in cryptocurrency has never been easier. With SMSF Wizard, you can take control of your superannuation, roll over your existing super, and invest in the growing world of digital assets—all while staying compliant with Australian regulations. From the initial setup to ongoing investment, SMSF Wizard is here to simplify the entire process, giving you the freedom to grow your wealth in the way that suits you best.