Self Managed Super Fund

Setting up a Self Managed Super Fund

Deciding to set up a Self Managed Super Fund

 Managing your own super is a big responsibility, so it's important you make sure it's the best option for you.

Things to consider:

Setting up and operating a  is a major financial decision. After all, the responsibility for running the fund and complying with the law rests solely with you as trustee.

While Self Managed Super Funds are great for some people, they don't suit everyone. Managing your own super takes time, knowledge, skill and money, so before deciding to set up a Self Managed Super Fund, it's important to understand the following:

• What's involved in managing your own fund
• What it means to be a Trustee

You need to:

• Consider whether you have
  • the time, knowledge and skill to manage your own super
  • the assets and money to make the fund viable
• Compare the costs and benefits of running an SMSF with those of other retirement saving options
• Make sure you're setting up the fund solely to pay retirement benefits to members.

A Self Managed Super Fund is just one way to manage your super and save for your retirement. you should also consider other options before you make a final decision.

What it means to be a trustee

When you set up a Self Managed Super Fund, you take on the role of either a:

• Trustee, or
• Director of a company that is a trustee (called a corporate trustee)

A trustee is a person or company that holds and invests the fund's assets for the benefit of the members' retirement.

As a trustee of director, you'll be responsible for the following:

• Running the fund
• Making decisions that affect the retirement interests of each fund member, including yourself

You need to comply with the super and tax laws so your fund is entitled to tax concessions and members' interests are protected.

You need to also:

• Act in the best interest of all fund members when you make decisions
• Manage the fund separately from your own affairs
• Ensure the money in the fund is only accessed where the law allows it

Being a trustee gives you the chance to actively manage your own super and make your own investment choices, but it also brings responsibilities. All trustees and directors are equally responsible for managing the fund and making decisions - even if one takes a more active role in its day-to-day running.

Rogerson Kenny Business Accountants Melbourne can assist you with your accounting and auditing requirements. If you would like to appoint Rogerson Kenny Business Accountants as your approved auditor, or would like to discuss this topic further, click contact us or call us on (03) 9802 2533.

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