The Challenges and benefits of an SMSF

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.

The practicalities

Some of the points you need to take care of while setting up your SMSF include:

1. Register your funds—You can do it yourself or Superannuation Rescue can do it for you, but every Self Managed Super Fund must be registered with the tax authority.
2. Rolling over your super— Superannuation Rescue can help you set up a bank account for your super funds so that your accumulated super money can rollover.
3. Reporting and Administration—there are a range of reporting, compliance and administration obligations your fund is needed to meet with. We can help you in all these.
4. Set up a trust deed—every super fund should have a trust deed which sets out rules for the way the fund must operate.

 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.