Self Managed Super Funds - Do's And Don'ts

Self managed super fund is a way to save financial assets for retirement days. By investing in self managed super funds you can ensure financially stable retirement days. In recent years it was noted that a growing number of Australians are investing in self managed super funds.



The reason why more and more people are making this type of investment is the fact that they want a successful financial strategy for saving money for retirement. For others this is a way for making money by investing the assets of this fund in properties which with the time increase in value.

To turn the investment in self managed super funds a successful strategy is not so easy and simple as it might seem. There are numerous regulations defined by ATO, which must be followed for this purpose. Here is a quick overview of what you can do and what you can not do before or after the setting of self managed super funds:

• Before setting the self managed super fund, you define your own investing strategy;

• You can set a SMSF fund for you only or together with other trustees, but not with more than 5 members, but you can not be related as employee and employer.

• You must learn the ATO's rules before setting self managed super fund and behave in compliance to those rules. Do learn as much as you can about how to properly run SMSF.
  Even though you'll have an advisor who will help run the fund, guide you and offer advices on what, when and how to invest, you still need to have enough smsf knowledge to be able to understand everything your accountant suggests.

• Do make time to run the fund. Even if you plan to hire experts to help manage the fund, you still will have to be involved. This is time-consuming. Thus, if you think you will not have the time, do not set SMSF.

• Take into account the possible risks of for your investment and be prepared for any outcome, especially if you plan to invest in property. If you think that you won't be able to cope with the potential lose, do not set SMSF.