How to set up a Self-Managed Superannuation Fundby Vicky Mamoria Website Promoter
If you have made-up your mind that an SMSF is right for you, it is very important to understand the steps involved in getting your superannuation fund set up. An SMSF can assist you in taking control of your fund and get it working for you. With complete SMSF service you decide where you want further assistance, so you get more freedom to concentrate on what matters the most to you. Another solution to ensure financials for your retirement is to set up an SMSF (self managed superannuation fund). Below are a few points you should take care of.
Understanding the laws and risks – If you do not comply with tax and super laws, there is a higher cost to pay, and you also won’t be eligible for tax concessions. It is illegal to set up a self managed fund to manage your decorative artworks or to purchase a holiday package. You shouldn’t also breach the in-house assets test, use inappropriate loan arrangements, or refuse to documents all the fund’s assets.
Deciding the trustee structure- Before you take steps to set up your very own Self Managed Fund, you should deeply think about the structure your fund will take. You need to decide whether your fund will have individual trustee or a corporate trustee where the fund members are directors.
The trustees need to be older than 18 years and should not be facing any bankruptcy code. Once you have decided on the trustee structure of your fund, you need to then decide if you and the other members are eligible to be trustees of the SMSF, as said above.
Do enough research – If you want to run a self managed super fund, you need to complete the SMSF Trustee Education Program which will help you in understanding your role & responsibilities. The ATO also has other useful information on self managed super funds. For SMSF advice, ask a member who belongs to the SMSF Professionals’ Association of Australia (SPAA)
Assets, skills and Time – You should have the required assets, time, and skills to set up and run a super self managed fun, at the same time to comply with the law and make good investment decisions.
Building and securing your wealth - Every super fund must have an investment strategy that should determine how the funds will be invested within the SMSF. This investment strategy must be documented well with the detailed objectives of the funds, at the same time what asset classes the fund can and can’t invest in, should also be mentioned.
This investment strategy should be reviewed from time to time so that the risk involved can be calculated and adjustments as necessary, can be made.
Seeking professionals advice – You must seek advice from a licensed and qualified professional to assist you in deciding if a self managed super fund is appropriate for you. Even tax accountants and agents can show you how to set up and run a super fund, but a licensed financial adviser will tell you what you should invest in and which super fund will best suit your requirements.
If you are setting up a self managed super fund then you should know the risks, cost, and benefits involved and have done your research and understand your responsibilities. Before you set up a super fund, you need also be 100% committed.
At Superannuation Rescue, we focused in assisting people to establish a SMSF, at the same time self-managed superannuation property investment. We have complete SMSF service to assist families bring structure to their finances, get their financial house in order, and achieve financial peace of mind.
Created on Jan 12th 2018 03:21. Viewed 1,083 times.