Advantages & disadvantages on your own Self Managed Super Fund

Creating SMSF is not really the best option for everyone. SMSF takes time and attention, but its benefits are great.

Advantages & disadvantages of you own Self Managed Superannuation

What are the positive aspects of having a SMSF.

• Greater control over financing administration of the fund;
• Opening for immediate direct investment in shares and property;
• More strategic planning chances: in-specie donations, charge arranging, estate planning and potential costs savings .

Possession SMSF carries its own disadvantages.

• Not practical for little results of cash, recommended least at any rate $250,000;
• Should understand trustee obligations and investment limitations;
• Chance to supervise the paperwork and uphold exceptional records.

Fund investment strategy

Trustees must have a composed contribution methodology and and consider the following: circumstances of the fund, make the store financing targets, acknowledge risk associated with the funds investments, build reserve holding portion, acknowledge the stores liquidity necessities to pay profits .
The trustees are needed to finance understanding with their technique and audit this on a consistent foundation.
Notwithstanding the store financing methodology the trust must go along the sole reason test.

As Trustee administrative have special obligations that you have to obey.

• Trustees must mark a trustee presentation;
• Keep records for 10 years;
• Get ready and keep precise bookkeeping and regulatory records;
• Keep finances contributions partitioned from private backings;
• The fund must do whatever it takes to meet the definition of an "Australian superannuation fund";
• Appoint an auditor and lodge the fund income tax.