What's Involved With Self Managed Super Fund?

Looking to join the one million Australians who have invested more than $500 billion into self managed super funds? If you are an individual committed and well informed than an SMSF can be a powerful way to save for your retirement too!

According to self managed super funds Australia experts, the key to succeeding with this type of fund is being aware of what is really involved in it. To help you understand a little more about it, let's take a quick look at a typical SMSF.

When you first set up an SMSF, you need to:

• Decide on fund members and trustees;

• Establish the trust and trust deed;

• Set up a bank account;

• Register with the ATO;

• Create your own investment strategy;

• Include a plan for when your SMSF ends.

Once you set up your super fund, there are other factors to consider, including:

• Rolling over of existing super;

• Organizing employer contributions;

• Accepting contributions within limits;

• Making investments without breaking rules;

• Regularly reviewing the investment strategy;

• Documenting and maintaining records for up to 10 years.

Next, each of the trustees in the fund will need to:

• Value assets;

• Prepare accounts and financial statements;

• Appoint a registered self manage super fund auditor;

• Lodge the annual return;

• Pay the fund levy and any tax that's due.

When you start making payments, you need to:

• Decide if any assets need to be sold;

• Ensure minimum payments are met each year;

• You may also need to appoint an actuary;

• Withhold tax;

• Give payment summaries to members as well as the ATO.

Finally, when the fund is finished you need to:

• Get a final audit;

• Lodge your final return;

• Pay any outstanding tax;

• Payout or rollover all of the assets.

As you can see, there is a lot involved in an SMSF. So, before you decide to start an SMSF you need to consider whether you can manage everything or you are prepared to hire the services of self managed super funds Australia professionals to help you out with. But remember, even with the help of professionals, as an SMSF trustee, you are ultimately responsible for your fund. It is wise to seek some professional advice to help you decide whether a self managed super found is right for you or not.

For the last two decades, SMSF has been the fastest growing sector of retirement investment. With its benefits of full control, investment flexibility, and no restrictions concerning it is today considered the #1 choice among the Australians.