Are You Ready to Manage Your Own SMSF?

 

Since the downturn in the economy and the global financial crisis (the GFC) the new buzz words are Self-Managed Super Funds.

Is it time and to think of running your own fund leading up to retirement? Being in control of your investments and your own future can be a very exciting venture.

But before you get carried away and start looking at what you could do with your superannuation funds, it would be prudent to sit back and take stock of just what it means to run your fund and what the legal requirements are.

Self-managed funds are not for everyone, and you might think carefully before setting one up. It’s a major financial decision and you need to have the time and skills, or at least access to independent advise along the way.

Deciding on starting and maintaining a Self-Managed Super Fund takes a lot of forethought:

* What will I invest in?

* Will my investment meet the ATO guidelines?

* Will my investment bring a good return compared to a managed fund?

* Am I relying on cash returns, dividends or capital growth?

For extra information read this helpful Australian government factsheet from Moneysmart.

It’s a major financial decision and you need to have the time and skills, or at least access to those who have the knowledge to help.

So who might you need?

Depending on your skill level, you may need some or all of the following professionals:

Accountant

Financial Adviser

Auditor

Book keeper

Insurance Provider

On top of these you may also need to purchase an accounting software package.

The one service you will definitely need is an Auditor as no matter whether you do your own accounting or have it done it professionally there is a legal requirement to have your books independently audited.

 


This article was created as general information only and not to be considered complete or advice. Individual circumstances and financial needs vary from person to person and the intent is to provide an overview of the considerations concerning SMSFs or investors. Links to other sites do not constitute endorsement or accuracy of the information contained within the referenced website.


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