In this episode of SMSF Insider, Troy breaks down two of the trickiest super structures people come across when they’re thinking about starting an SMSF: defined benefit funds and deferred benefit funds. He explains how defined benefit funds work (and why they’re so valuable), what a deferred benefit fund actually is, and the huge tax bill that can hit if you roll out of a deferred benefit fund without understanding the rules.

Troy also walks through when it might still make sense to roll into an SMSF, why public sector workers need to be especially careful, and whether you should keep your existing super fund open for insurance even after you set up an SMSF.

If you’ve ever worked in the public sector or think you might have one of these older-style funds, this episode is a must-listen before you move a cent.

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Please note: The information provided in this recording is for coaching and educational purposes only. It should not be considered personal financial advice. Everyone’s situation is different, so before acting on any of the content discussed, please seek independent financial advice tailored to your specific circumstances.

Timestamps:

00:00:00 - 00:00:00: Introduction

00:00:52 - Different types of funds and key risks

00:01:04 What is a defined benefit fund?

00:02:11 What is a deferred benefit fund?

00:04:16 Who typically has these funds?

00:06:02 Why closing your old fund can leave you uninsurable

00:07:51 Don’t roll out until you’ve had your situation checked