Self managed super funds (SMSF’s) are there to fund your retirement. The difference between a SMSF and conventional super is that you have a far greater control of your assets.
Your self-managed fund can have up to four members, two of whom are trustees. So for example, your SMSF could be a family trust set up for the specific purpose of providing benefits for you and your partner in retirement.
Setting up a SMSF is not difficult, and it’s not expensive. But it’s important to get the structure right for your given circumstances. As part of setting up the fund you’re required to provide details of trustees, verify minutes of meetings and obtain a tax file number and an Australian Business Number.
Importantly, the trustees of your SMSF are legally responsible for the fund’s investment strategy. That strategy sets out the kinds of investments that your fund will be undertaking and the purpose for which they are made.
One of the risks of a SMSF you may know of are that the trustees are sometimes not able to access quality research and can hold too many investments in the one type of asset class. But our Financial Advisors can work with you to fill such information gaps and better manage your SMSF.
If you are considering setting up your own SMSF, please contact us to speak with one of our advisors.