- March 3, 2015
- Posted by: admin
- Category: Superannuation
While there have been a significant increase in the number of super-managed superannuation funds in Australia in the recent years, it is not exactly a solution for everyone.
Before you decide to set up your own SMSF, it is highly recommended that you seek the expert advice of your Melbourne accountant or one of the reliable small accounting firms Melbourne before you do so.
The Basics of SMSF
SMSF, by definition is a do-it-yourself approach to handling super fund. It is ideally designed to provide its members retirement benefits and generally allows a maximum of 4 members, with each one acting as a trustee of the said super fund.
The SMSF is governed by a Trust Deed, which contains all the rules of operation for the fund. It outlines the investment strategy to be used and where it can be used o invest. An SMSF also has its own bank account and is required to be audited on an annual basis by your Melbourne accountant or trusted small accounting firms Melbourne as well as lodge its taxes to the Australia Taxation Office or ATO.
An SMSF comes with both advantages and disadvantages. For one, you gain better control over your retirement savings, especially in how it should be invested. You also have the option to transfer your shares as well as managed funds into your own super funds. This allows you to formulate your own strategy in terms of investing and manage your portfolio according to the changes in the market.
Through SMSF, you also have a greater flexibility with the wider choice of options, which include bonds and listed shares, among others.
As mentioned SMSF is not for everyone. Most people with no time or background in finance and accounting will do better if they enlist the services of a trusted Melbourne accountant or one of the small accounting firms Melbourne to ensure money is invested well and your best interest is protected.