A Bitcoin Super Setup
Welcome to your destination for establishing a Self-Managed Super Fund (SMSF) and securely managing your Bitcoin. This critical journey may seem complicated, but rest assured that we're here to illuminate the path.
Two routes lie ahead. One, you may choose the path of self-direction, taking charge of every detail yourself. Alternatively, the path of collaboration beckons, where you leverage the expertise of The Bitcoin Adviser to guide you through the process.
On the first route, you'll find a comprehensive guide here, providing step-by-step instructions on setting up a separate bank account for your SMSF, making personal Bitcoin purchases on various exchanges, and securing your SMSF Bitcoin via a service like Unchained Capital. Plus, you'll discover indispensable tips on safeguarding your keys and seed phrases while also ensuring a safe passage for your funds to your loved ones in unforeseen circumstances.
However, if you choose the path of collaboration, The Bitcoin Adviser stands ready to assist you. Their experts bring years of experience in assisting clients with their SMSFs and Bitcoin investments, delivering peace of mind through robust security measures, comprehensive estate planning and broader bitcoin education.
Whether you are an SMSF novice or a seasoned investor, we strive to empower you with the knowledge and confidence to manage your retirement savings and Bitcoin investments securely. Your financial future deserves no less. Let's embark on this journey of SMSF and Bitcoin management together.
Your employer pays you a salary and a compulsory superannuation contribution.
Salary goes to your personal bank account and you may well be regularly buying bitcoin as your own personal savings account, it's important to note that this must be kept seperate from any SMSF bitcoin.
When you setup your SMSF you also need a bank account to receive those funds from your employer, when creating a SMSF with eSuperfund, they organise this for you as part of the setup process. The SMSF setup is a follow the bouncing ball process with eSuperfund, it can take a few months and requires you to be diligent filling out all the paperwork correctly but it isn't complicated and you shouldn't be discouraged.
One of the first decisions to make when setting up with eSuperfund is whether to have a company or an individual trustee structure. A company trustee structure is often recommended over an individual trustee structure for a self-managed superannuation fund (SMSF) for a number of reasons:
Limited Liability: When an individual is acting as a trustee of an SMSF, they are personally liable for any breach of the superannuation rules or trust deed. In contrast, a company trustee has limited liability, and the company is responsible for any legal or compliance issues that arise.
Succession planning: A company trustee structure can make succession planning easier because the company will continue to exist even if one of the directors/trustees dies or becomes incapacitated. This ensures the fund can continue to operate without disruption.
Simpler administration: A company trustee structure can make the administration of the SMSF simpler as it is easier to change directors than to add or remove individual trustees. It can also make it easier to open bank accounts, buy assets, or enter into other transactions.
Separation of assets: With a company trustee structure, the assets of the SMSF are held in the name of the company, which helps to separate them from the personal assets of the members.
Easier to add new members: It can be simpler to add new members to an SMSF that has a company trustee, as the company structure makes it easier to accommodate additional members. This can be useful if a member’s spouse or children want to join the fund.
Overall, a company trustee structure can provide greater protection, flexibility, and ease of administration for an SMSF, and it is recommended for many SMSFs. However, it is important to seek professional advice to determine which structure is best for your individual circumstances.
When buying personal bitcoin use as few or as many bitcoin exchanges as you're comfortable with, use the exchanges that have the best rates, convenient services like Dollar Cost Averaging (DCA), buy P2P or non KYC if thats your thing, just don't keep your funds on the exchange once you've purchased. Withdraw your bitcoin from exchanges, not your keys not your coins!
I've found Independent Reserve to provide all the capabilities I need for my SMSF exchange account, the account needs to be setup in the name of your SMSF and is only to be used for the purposes of your SMSF. As before my funds are only on the exchange for the time it takes me to purchase bitcoin and move it straight to self custody, minutes at most.
Unchained Capital is a great service for setting up and securely storing your bitcoin, they do not have access to your funds but can help if you have issues, it is worth studying how their service works, they put some great content on YouTube. These vaults are typically refered to as 2 of 3 Multisig, meaning that you need 2 of 3 keys to sign any spending transaction. Coldcards are my signing device of choice but there are many different ones available.
I also use Unchained Capital to setup and secure my SMSF bitcoin, as before it is important that personal and SMSF bitcoin are always separated, you must not commingle funds.
This is one of the neatest things about unchained, you can export a "Vault Map" which is a file that describes the details of your vault and can be...
Imported into an open source wallet like Sparrow, this ensures you can still access your funds even if something were to happen to the unchained business, and remember unchained cannot access your funds, you are self custodying them and only your keys allow you to spend your funds.
It is important that you leave instructions for your family on how to access your funds should anything happen to you, there are many methods to do this from writing the seed words to your keys on paper, stamping them on metal, one method I favour is encryting the information on Micro SD cards using datAshur encrytion devices. The important rule is to keep your keys and seed phrases secure so your funds can't be stolen, but not so secure that those you love and trust can't benefit from your foresight in future.
