Self Managed Super Fund

Thinking about Self Managed Super

Make sure your trust deed and investment strategy are tailored to suit the members

Regularly review whether the trust deed and investment strategy still meet the needs of your fund and update them when required.

Trust Deeds
A trust deed is a legal document that sets out the rules for establishing and operating your fund. Together with the super laws, they form the fund's governing rules. The trust deed needs to be:

• Tailored to your fund
• Correctly drafted to meet
  • Legal requirements
  • The fund's objectives
  • The members' needs

Investment Strategies
An investment strategy sets out the fund's investment objectives and your plan to achieve them. It provides you and the other trustees with a framework for making investment decisions to increase member benefits for their retirement. Your investment strategy needs to take into account the personal circumstances of all the fund members including:

• Risk tolerance and attitudes to risk
• Age

One strategy may not suit every member, especially where the fund consists of people at different stages of life. In these situations you need to select and manage investments well enough so they grow in value and meet the investment objectives of all members.

You need to make asset allocation decisions by choosing from a range of investment assets including:

• Cash
• Bonds
• Property
• Shares

Defensive Investments
Cash and bonds are defensive investments, with practically no risk of losing money, and the returns may seem reasonably high. however, you will lose some of the return in taxes and some to the effect of inflation. These safer (defensive) investments don't provide long-term capital growth.

Capital Growth Investments
Property and shares are capital growth investments and tend to be more tax effective. This means the value of your investment should grow faster than inflation, creating real wealth. However, capital growth is not guaranteed and there can be a lot of ups and downs over the investment time period. Each year, the amount and frequency of your gains or losses will be uncertain and could differ, perhaps significantly, from reasonable long-term estimates. Specific assets may lose value and never regain it.

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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