SMSF - Super Growing Super Funds

A Self Managed Superannuation Fund (SMSF) is a trust where money and investments are held and managed on behalf of the members. The fund’s purpose is to provide benefits to members on retirement or death. For many Australians, super is one of the biggest investments, if not the biggest investment, they will ever have. That's why most people keep their super money in professionally managed super funds. The growth in SMSFs over the past decade has been phenomenal. About $10 billion a year is being invested into self-managed super funds (SMSFs) as investors switch from traditional industry and retail funds, often on the advice of accountants promising greater flexibility and improved returns. Australians have been changing to SMSFs for many reasons. SMSFs give people control over their super, provide greater investment flexibility and are a perfect medium to implement tax-planning strategies that take advantage of tax concessions afforded to superannuation savings in Australia. Importantly, the costs of running an SMSF are often lower than the fees charged under other superannuation solutions. rnAs per the rules and regulations of the ATO, an SMSF can have one to four members wherein each member is a trustee. If someone sets up a self-managed super fund one must: • Carry out the role of trustee, which imposes important legal duties on yourn• Use the money only to provide retirement benefitsrn• Set and follow an investment strategy that ensures the fund is likely to meet your retirement needsrn• Keep comprehensive records and arrange an annual audit by a qualified auditor If you're considering setting up a self-managed super fund you need to do your research and understand your obligations. Here, you need to manage your fund's investments in the best interests of fund members and in accordance with the law. Your investments should be separate from the personal and business affairs of fund members, including yourself. As a trustee you'll have a number of administrative obligations - for example, you'll need to arrange an annual audit of your fund, keep appropriate records and report to ATO on the fund's operation. Accessing the super in your SMSF to pay benefits is generally only allowed when a member reaches what's called their 'preservation age' and meets one of the specified conditions of release - for example, they retire. Also, there are significant penalties for unlawfully releasing super benefits. The income of your SMSF is generally taxed at a concessional rate of 15%. To be entitled to this rate your fund has to be a 'complying fund' that follows the laws and rules for SMSFs. And finally, at some point you may need to wind up your SMSF. This could happen if all the members and trustees have left the SMSF or all the benefits have been paid out of the fund. For an Easy and Secured Management of your SMSF, you can also take help from professional SMSF Advisor who have comprehensive knowledge of setting up your SMSF as well as managing it in your best interests, SMSF Audits and who are well aware of all legal regulations and remain compliant with the on-going changes by the government. SMSF has greatly benefited and is the Super Growing Super Fund today. Hence, if managed properly and lawfully, it is sure to yield you great benefits at the end. Disclaimer The material contained in this article is of the nature of general comment only, and neither purports, nor is it intended to be advice on any particular matter. No person should act on the basis of any information contained herein without considering, and if necessary, taking appropriate professional advice in relation to their own particular circumstances. No responsibility is therefore accepted for any error or omission, or advice expressed herein, nor for any loss occasioned there from. If you have determined to manage your own Self managed super funds, there are a few things that can be done to ensure that you are receiving the most out of your super funds. Here are some information and tricks to help you do this.