The Challenges and benefits of an SMSF
An SMSF (Self Managed Super Fund) is a savings scheme for retirement in the form of a trust. It gives you more ability to control your fund in the retirement account. Its aim is similar to a regular superannuation account, but you will have more control to invest your funds in a self managed super fund.
There is a lot to think about managing an SMSF. Managing your investments and setting up a fund takes time and can give you more freedom to control over your future financial needs. In most of the cases, it is ideal to hire SMSF specialist advisor to give you an expert advice on your super funds.
With an SMSF you will be able to take responsibility of all of your assets, for the investment choices and risk profile. Super funds are just that, self-managed. This will allow you an extra level of control on the funds that you wouldn't be afforded with a regular super fund.
If you don’t have any experience then it’s better to go with a SMSF specialist advisor to manage your funds.
Some of the points you need to take care of while setting up your SMSF include:
Investing your super
Your super fund investment solution will determine how your SMSF invests its money, at the same time it must be documented properly. The investments of an super fund generally include a mix of shares, term deposits, cash, direct property and managed funds. We will assist you to establish your fund’s investment strategy.
As part of your investment solution, you should also consider the needs of insurance for each member of your super fund. We can assist you consider income protection, life insurance, and total & permanent disablement cover for each of your fund members.
Structuring an SMSF
You can set up the structure of your SMSF in two ways. Either you can select a corporate trustee structure or an individual. Deciding on the type of trustee structure for your SMSF, is an important step that will affect the way the fund is managed and its costs.
Follow the rules
There are several SMSFs in Australia which are governs by law with strict penalties for trustees of funds in breach of them. Superannuation Rescue can assist you in understanding the obligations your super fund has and the responsibilities that would sit with you as a trustee.
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ABOUT THE AUTHOR
An Self Managed Super Fund is not for everyone so talk talk with David Boyle who is an SMSF advisor and will tell you whether an SMSF is right for you.