Want To Set Up A Self Managed Super Fund? Read This

SMSF, or Self Management Super Fund is a well-known subject to the Australian population. Why so? Because it is a super-efficient way of saving money for your retirement days. Thanks to this self managed superfund, you can invest your super savings for enjoying the fruits of your labor in the years to come.

SELF MANAGED SUPER FUNDS

But, what makes SMSF special and different from the other types of funds? It is the fact that all of the SMSF's members are also the trustees. However, it is good to know that not everyone can be a trustee and can run an SMSF, because excellent time and management skills is what every trustee must posses. To be an SMSF trustee means to be able to cope with lots of responsibilities for running the self managed  superfund and to make wise decisions that will not only affect your personal interests, but the interests of the rest of trustees as well. 

When it comes to building an SMSF, there are some main principles and rules that need to be met:

• The SMSF has to count less than 5 members;

• Each trustee is a member;

• Each member is a trustee;

• None of the SMSF members is an employee of some of the other SMSF members;

• None of the SMSF members is reimbursed for his/her function as a trustee;

Today, the self managed superfund is the fastest growing sector of superannuation, thanks to the great level of flexibility and control that it provides, compared to the old superannuation alternatives.

Let's take a look at the list of advantages of an SMSF:

Full Control Over the Investment Strategy – All the trustees of an SMSF decide together on the investment strategy or asset allocation and what approach to take to best balance risk and reward. Questions regarding how, what and when to invest, concern all the members of the fund. It is this  control over the investment choices that makes an SMSF so popular.

High Flexibility – The SMSF investments can be adjusted according to the needs and requirements of the trustees. There is the option to quickly change the SMSF investments, or the asset selection.

Reduced Taxes – All members of the self managed superfund benefit from reduced income taxes on capital gains and investment income

Durable Lifespan – According to the latest superannuation laws, the SMSF can provide benefits to all trustees for an unlimited period of time.