My SMSF is My Responsibility
If you are committed and understand the compliance and management of a Self-Managed Super Fund, you can set it up on your own. That means you are completely responsible for your super funds, even if you appoint an individual or a corporate trustee. The task of managing your SMSF can be quite daunting and involve a lot of engagement in financial dealings, along with risk management.
The SMSF setup should be following the law, as you are personally liable for all the decisions taken relating to the fund, even if the decision is made by another member of the fund or a professional that you appoint for fund handling. The expected returns on your SMSF depend on the balance maintained and can get as competitive as other industrial or retail regulated funds.
SMSF Setup and Management
The set up and running costs of an SMSF involve initial set up expenses, bookkeeping, acquiring tax advice, auditing services, and seeking financial and legal advice from the specialists. The annual cost of managing an SMSF amounts to $4000-6000 including administrative expenses or other SMSF supervisory levy and excluding insurance premiums and other expenses incurred during investments.
To cohesively manage your SMSF, make a thorough research before investing, plan and devise an investment strategy, keep all the accounting records, and get them audited and approved by an SMSF auditor annually. On an average it takes only eight hours a month to manage an SMSF account effectively.
Relevant Financial Knowhow
To manage an SMSF on your own or through a legal advisory, you will need the financial skills and knowledge pertaining to different investment markets and build a diversified portfolio before you can start investing. The investment strategy thus devised must meet your retirement needs in the future and have high risk tolerance throughout your lifetime.
The SMSF should always comply by the rules and regulations applied for tax and investment on your super. Moreover, you must take care of all the members of the fund by insuring them from any financial liability arising from the SMSF. Your SMSF is not the fund that you set aside to pay off your debts, it is a retirement plan that can be accessed after a certain amount of time or if the SMSF account holder is deceased.
Return on Investments
If you appoint a legal help to handle your SMSF, they will make sure that your investments produce good returns. Even if the financial shifts occur in the client’s personal or professional life, the SMSF gets managed accordingly. The active members on the SMSF can make contributions and increase the funds for a lifetime.
If they face a fraud or theft situation, the SMSF finances can help them sail through their tough times. You can also consolidate or merge your retail or industry fund into your SMSF account. If you feel that there is too much financial jargon, manage your SMSF with the help of a professional like iCare Super that will help you save time spent in managing the financial activities of the account.