If you’ve ever thought that you could manage your superannuation better than the so called ‘professionals’ who have been handling things, then do-it-yourself super could be the answer for you. Self-managed super funds may not suit everyone, but if you’ve got the willingness to stick it out with your long term plan rather than expecting overnight wins, it could be the right choice for you. More and more people are expected to be turning towards the DIY superannuation option as recent slumps, and poor returns have left a bad taste in many mouths.
If you think you would be a good home-based superannuation fund manager, then there are certain qualities you need to have.
You need to be organized & good at attending to jobs without fail. By being self-motivated to improve your financial education and taking steps to make sure your knowledge base increases, you can only gain from it. If you can’t see yourself as a ‘market expert’ and self-created financial adviser to yourself, you will need to help from a professional adviser. Some DIY’ers buy advice from financial advisers while others buy books, go to seminars & lectures, or other such activities, and pay the price to become an educated DIY SMSF Manager.
The DIY superannuation self-managed fund is called a self-managed superannuation fund or SMSF, and it can only have four members. Each of the members is referred to as a trustee, which means they are required to know what their taxation and legal obligations are.
An important consideration is that there are requirements for how SMSF’s must be structured, what assets can be bought, or funds spent, the recording mechanisms required and how all this is reported. Your SMSF fund is required to have a documented investment strategy, which should be linked to the retirement goals of all the members. The importance of this is that it details how funds in a self-managed super fund are allocated between assets.
Some of the concerns that the tax office has with SMSF include things like trustees putting personal assets into the fund such as houses, collectible items, antiques, artwork or other such things of value which can only be included to 5% of the fund.
When you think about it as a superannuation fund, the real purpose is to make sure you can afford a decent lifestyle once you retire. It’s not intended to benefit you pre-retirement as can be the case if money producing assets are included in your SMSF. Keep this in mind, and the tax department will love you.If you’re considering starting up your SMSF and you not sure where to start then perhaps it’s time to call your accountant and find out if they can help you.
There’s a lot to be said for getting professional advice from a qualified accountant for your SMSF. Contact super audits for SMSF Accountant in Adelaide and enjoy all their professional services. They’ll direct you in the right direction or even help you set it up right so that your structure is perfect for your retirement goals.