Have you ever considered of managing you own super? If you haven’t why not? We guess you already know your financial goals, you have a clear picture of your lifestyle after your retirement and of course, you know when you want to retire. You know these things much better than any fund manager, so setting up your own super fund is a great idea. Talking about managing your own fund, SMSF super is your wiser choice, since offer lot of benefits. The fact that is the fastest growing sector of the superannuation industry in Australia, means more and more people are standing against poor returns, and start taking control over their own financial destiny.
Since you probably do not have any experience with managing your own fund, it is a good idea to find a reliable organization that is specialised in providing SMSF administration services. Currently, there are more than 50 Australian organizations that will provide your help with setting up your trust deed, managing your audits, choosing the right structure. According to experts, you do not need to have a big portfolio or to choose complex investments to manage your own super. Here are some of the steps you need to take before switch to a self managed superannuation fund.
- SMSF is not the right choice for everyone. It depends on your goals and your situation. If you have some experience as an investor, great, but if you haven’t then you can rely on reputable administration service provider. Even if you choose an organization to help you with setting up your SMSF super, you will be responsible for ensuring your super complies with all relevant tax laws. As a trustee of your own super, you will need a lot of time and enough financial knowledge to run your fund successfully.
- Since you can include other trustees into your super (there must be at least 2 or maximum 4 trustees) ensure you make a wise choice. Most people include their spouse or other members of their family. However, when it comes to including your children in this, be careful.
- Which structure you will choose is also an important consideration. You can have either individual or corporate trustees. This is a complex decision, so before you make it final, make sure you seek advice from the ATO or from an SMSF special provider.
- The simple is possible, the better. Get informed about how to keep the costs low and profits high. There is no point running a self managed superannuation fund if the cost for administration are much higher in comparison with the fees you need to pay on your existing fund.
- Insurance is something you can not forget when setting up your own super. Most of the funds include income protection, disability and life insurance, so when you have your own fund you need to manage all these insurances yourself.
As a bottom line, if you set up an SMSF you are in charge and you are responsible for any investment decision and for complying with the tax laws and your super. Remember, it is an important financial decision and you need to have the time and skills to do it.