Although, establishing and maintaining a superannuation account requires expert knowledge, many individual now prefer to run these funds themselves. This trend is largely because of increasing awareness among white-collar workers and due to a global economic slowdown. For getting hands-on control over one’s pension funds, many Australians set up SMSF. SMSF, or Self-Managed Superannuation Fund can be established and managed by the individual, however, should comply with rules and regulations set by the Australian Taxation Office.
Establish SMSF? know the following:
An individual must be aware of all features before planning to manage their own funds. Before venturing into a Do It Yourself fund, you should be privy to the following.
Setting up an SMSF, you are designated as a trustee of the funds alongside just being a member.
A trustee, apart from enjoying benefits like having control over funds, will be required to follow certain rules and fulfill several responsibilities towards the money invested.
In a single superannuation funds, there can only be a maximum of 4 or less members
All the decisions taken by a member that pertain to the funds will be taken as the trustee.
It is important to remember that a trustee managing the SMSF plan should use the money in a way that only provides them retirement benefits.
A trustee enjoys the freedom to choose an investment strategy for the fund. However, it is imperative that the investment strategy is not just established but followed as well.
How is SMSF beneficial?
For a trustee in a SMSF fund, the major benefit one enjoys is of having autonomy to manage and control their retirement funds.
An important advantage is of investment choice. From property SMSF investment, to share market or cash, an account holder has the independence for making a suitable investment in an industry of their choice.
Taxation benefit is one important factor of SMSF. Trustees enjoy the lowest rate of interest of maximum 15%. This is further reduced by compensating other tax credits.
SMSF Responsibility
With control over funds to manage retirement funds efficiently, a member has to perform several responsibilities. An important duty for a member in a SMSF funds is of conducting regular audits. An SMSF auditor can be hired for keeping track of funds accurately and monitoring fund investment as well.
Redwood Advisory is an experienced Content writer and publisher for Business Development. For more information about Property SMSF, SMSF Auditor, Set Up SMSF, visit us at: http://redwoodadvisory.com.au/borrowing-to-invest-in-property/