Self Managed Super Funds - Your Perfect Match?

Sick of lack lustre returns?   Think you could do a better job investing your hard earned superannuation savings than the professionals?   If you would like to control where your money is invested, a Self Managed Superannuation Fund (SMSF) could be the answer.   A word of warning though - you might be biting off more than you chew!

Managing your own self managed superannuation fund can be time consuming,  and very few investors fully understand the responsibilities of being a Trustee of their own fund (and the ATO are onto them!).   To give you a hand to start your research to ascertain whether a SMSF is your perfect match, I have sourced the following publications on the Australian Taxation Office website:-

Thinking about self-managed super (NAT 72579)
Developed jointly with the Australian Securities Investments Commission, this publication provides information about factors to consider before setting up an SMSF.

Setting up a self-managed super fund (NAT 71923)
Provides information about how to set up an SMSF and basic information about operating the fund.

Running a self-managed super fund (NAT 11032)
Provides information on the role and responsibilities of trustees of an SMSF, such as your compliance and lodgment obligations. This publication replaces Roles and responsibilities of trustees (NAT 11032-07.2007) and DIY Super Its your money… but not yet! (NAT 11393).

Winding up a self-managed superannuation fund (NAT 8107)
Provides information on how to wind up an SMSF including trustee requirements and reporting obligations.

Click below to obtain copies of the above booklets:-

http://www.ato.gov.au/superfunds/content.asp?doc=/content/00182862.htm&pc=001/149/005/001/001&mnu=46091&mfp=001/149&st=&cy=1

Why don’t you subscribe to SMSF news in order to receive regular and up to date information from the ATO on developments in this area?

Interested in borrowing money via your superannuation fund? It is not as straightforward as it sounds and you have to jump a few hurdles.  Consequently, I highly recommend you seek specialist advice from your accountant or financial planner. Following is another ATO link which provides information on this subject (note – superannuation funds use vehicles called ‘instalment warrants’ to borrow money):-

http://www.ato.gov.au/super/content.asp?doc=/content/00132054.htm

I also found the following free booklet produced by Julie Hartman, CPA from Bantacs, who has a practice based in Queensland. I think she does an excellent job explaining the advantages and disadvantages of borrowing funds via your superannuation fund.

http://www.bantacs.com.au/booklets.php

Your perfect superannuation match could be a SMSF, just  don’t ignore the complexities and costs.   For the majority of superannuation account holders, outsourcing the administration and investment to an industry corporate, government or retail superannuation fund may also be a perfect marriage.

Cheers and happy researching.

Josie

ps  Remember ‘nobody cares more about your money than you do!’ and make sure you work out the real cost of running your own superannuation.