SMSF: Self Managed Superfunds FAQs


Who says that retirement can not be fun. If you wisely plan your money, you could enjoy retirement days in luxury. Many would ask how. By setting a self managed superfund. Join thousands of other DIY superannuation fund holders who have decided to take things in their hands. Don’t let others manage your savings, when you could do that yourself. With DIY superannuation fund you could invest today and enjoy tomorrow. Thanks to this fund you could enjoy your future without having to worry about money. Some people are not quite familiar with self managed superfunds. Let’s see what are the most frequently asked questions and how can you create a worry-free financial future with the help of these funds.

SMSF

Who Can Set Up A Self managed Fund?

Anyone who is willing to have full control over the money. Well, almost anyone. There are some restrictions for people who were convicted of a dishonest act or banned by the Australian Taxation Office. Self managed superfunds are not for everyone. If you know how to work with your money and smartly play the game, you will succeed to double the sum within few years.

What Is a Trustee?

The person that is responsible for managing the fund according to all the regulations is called a trustee. That same person must work in accordance to the Superannuation Industry Act 1993 and other relevant laws that apply to these funds. Anyone over the age of 18 is eligible to become a trustee of a self managed superfund. A trustee is also responsible for lodging all documents with the taxation department as well as preparing unique investment strategy.

What Types Of SMSF Are There?

There are 2 types of self managed superfunds. One is called ‘More Than One Member Fund’ and the other is called ‘Multiple Member Fund’. You can either be a company or an individual, depending on your preferences. If your fund only has 2 to 4 members, then all should be trustees or directors of the trustee company. With the single fund, either you or another person who is not an employer, can be the trustee of that fund.

When Can You Get The Benefits?

Usually, you get to receive the benefits of this fund upon retirement or death. But, there are always some exceptions. You can access your DIY superannuation fund earlier, if there is some severe financial hardship, permanent incapacity or other compassionate grounds.

Who Receives The Benefits If a Member Dies?

In case of death, the benefits from the fund will be distributed in accordance with the terms of the trust deed.

What Are The Benefits Of Having a SMSF?

Creating your own superannuation fund can be quite beneficial:

  • As an smsf member you have a total control over your money;
  • You are eligible to invest all your fund’s assets in ‘business real property’;
  • With smsf you get to save for your retirement days;
  • With this fund you get to reduce your tax rate.

Goran Nikolov is a content writer of Protista, a website where you can find a lot of interesting lists. He is from Macedonia and has a passion to write lists about everything that surrounds him, especially about sports, health, music, technology and history. Goran loves to play basketball in his free time, enjoys playing on his guitar and sharing his thoughts with others.