Is a SMSF right for me?

Your super can play a very important part in your retirement life. Most people choose to entrust their super to a large retail or industry superfund where your super is pooled together with a large number of other members. However, many people feel more comfortable managing their own superfund so that they can have better control of their money and they can choose the investment options to suit their own risk appetite, instead of trusting other people to manage their money. Sounds great? Well, before you start to set up your own superfund, please consider the following points:

•Consider the option of managing a superfund or whether you feel more comfortable seeking professional advice.

•Ensure you have sufficient assets, time and skills to manage your own fund as it requires some investment and basic tax knowledge and time to manage your own superfund.

 

•Follow the super and tax laws and understand the risks. The ATO is very strict on SMSF rules and you should be prepared to adhere to those rules. You need to understand that the superfund is solely for your retirement. It is important to note that the superfund is like a separate entity from you, which means that any personal use of funds will not comply with the rules.

 

•Tailor your trust deed and investment strategy to suit the members of your fund. This is the advantage of managing your own superfund. You are in total control of your superfund’s investment options.

 

•Make sure you meet your record keeping, reporting and auditing obligations. As this can be difficult for most SMSF owners, it is better to seek professional assistance and IPS may be your best choice as we can help you to meet those obligations for a very low fee.

 

After you have reviewed the points mentioned above, you should have some idea of whether a SMSF is right for you and you may have some confidence to start your own superfund. You can also get advice from a financial advisor on whether a SMSF is suitable for you. A Tax agent or accountant such as IPS  can help you set up a SMSF and provide ongoing assistance to manage the SMSF.