All You Need to Know About SMSF: What the heck is that?

Maybe you have already heard about this famous SMSF, but do you know what it stands for? Well, for start, it is an acronym for Self Managed Superannuation Fund. Yes, it may seem long and complicated, but this is in fact one great idea and opportunity for those who plan to have peaceful and organised days after they retire.

SMSF is system for saving money, with favorable taxes, that you will be able to use once you fulfil the conditions for it. Of course, the main point of this idea is to save money in order to be able to maintain a high standard of living when people retire, but also if they have some major injury or if they die.


You know what is best about it? You have more control over your savings and you get to know and decide where and when to invest them. Exactly this is way SMSF are called DIY Superfunds. If you are willing to take responsibility for your own money – SMSF is the right thing to do. If you want some advice, you can always hire a financial consultant or accountant to help you out, but no other person will be able to make decision for your savings.

To be more precise, in order to create SMSF there need to be 1-4 members who are also trustees of the fund. Every single member has the right and opportunity to take part in the decision making process. Only members who are related can be in a same fund as employer and employee. Usually, all of the members in one SMSF are related. None of the trustees receive remuneration for their services in the fund.

Not only people can have SMSF, but companies also. In this is the case, than each director of the company should be a member of the fund and vice versa. The other conditions are same as the ones for regular employees.

If you think that you can act honestly and in best interest of the other trustees, if you are willing to make investment decisions and do all this in accordance with the laws, SMSF definitely is a place where you should keep your savings.

References: smsfwarehouse.com.au