Self Managed Super Fund: Getting started
Posted 16 Apr '15
Posted 16 Apr '15
A Self Managed Super Fund (SMSF) can be used as a great tool to provide for your retirement. A SMSF has the same role as any other industry or retail super fund; the difference is that the members of an SMSF are also the trustees. This means that the members control the investments of the SMSF and the payment of member benefits.
Controlling your own super fund also means that you must comply with several requirements under super law. The requirements differ depending on whether your fund has individual trustees or a corporate trustee (company) structure.
The first question to ask when setting up your fund is; will it be an individual or corporate trustee? It is important to know the difference between the two structures.
Generally, individual structures are cheaper to register and establish yet can become time consuming and expensive when trustees change or leave the fund. Individual trustee structures also mean that each individual trustee can be liable for fines and penalties from the ATO for compliance breaches.
Corporate trustees on the other hand ensure ownership documents do not have to change when members join or leave your fund making it easier to manage changes that result from death, divorce or disability. A corporate structure will also ensure assets held in individual names are not intermingled with fund assets.
If you are thinking about setting up a Self Managed Super Fund or need help with your superannuation contact me today on 3117 3736.
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Cornerstone Advice provides financial planning and mortgage broking services. They specialise in working with busy families and professionals to establish a financial roadmap that maximises their financial opportunities alongside establishing a backup plan to protect against the unexpected.