Self Managed Super Fund or just a SMSF, like other super funds, is a way of saving for your retirement. The basic difference between other types of funds and SMSF is that the members are also the trustees. This means each member can run the SMSF but only if for the benefits of all SMSF members. Before setting up a SMSF, consider all factors since this super fund is not for everyone. This will be one of your toughest life-changing decisions and you must have skills and time to successfully manage your SMSF. Otherwise, definitely seek professional services of a SMSF Australia adviser.
When you set up a self managed super fund, you become a trustee or a director. In either case, you’ll be in charge for managing your SMSF according to Australian Taxation Office rules and laws. Also, you need to follow the conditions stated in the trust deed of your SMSF. The key point is to run your super fund in the best possible manner that will provide best retirement benefits to all members.
- The Importance Of A Trustee – A trustee of a SMSF has a really important role. This individual is responsible for ensuring that SMSF always complies with ATO regulations. Also, he/she must always manage the SMSF to ensure only best interests of all members and choose investment strategies that will help the SMSF grow.
- Investment Strategy – You have to invest according to your investment strategy. As a trustee, you have the flexibility to choose the investments you think will help your super grow. However, there are certain restrictions on investments and you need to be well informed. This is exactly why you should hire a professional SMSF Australia adviser to advise you on what and how to invest.
- Regulations – As a trustee, your main responsibility is to run the fund according to ATO regulations. Australian Taxation Office requires every SMSF to comply with set rules and laws, otherwise you will be penalized.
As a trustee of an SMSF you will definitely have administrative obligations. You will need to prepare annual returns and keep records of SMSF activities. However, record keeping is a huge responsibility. To ensure everything is in accordance with ATO rules, hire good SMSFAustralia adviser to set up, manage and help you run your SMSF.
