Taking control of your financial destiny is one of the things that will help you to ensure that you retire in your dream home and live comfortably in your twilight years. 

This is where a Self Managed Super Fund (SMSF) comes in. 

An SMSF has numerous advantages over regular superannuation and therefore, more and more people are looking into it. 

An SMSF accountant will help to ensure that all the administrative and compliance obligations are achieved. Below is a guide on what an SMSF entails.

Benefits:

• Estate planning – you will have access to strategies with minimum tax liability and maximum protection of assets.

• Tax Concessions – earnings will be taxed at 15% and the capital gains on investments at 10%

• Investment Flexibility – you will be free to decide what you want to invest in and how to allocate your assets effectively.

Steps Involved In Setting Up An SMSF

When setting up an SMSF, it is recommended for you to get a professional to help you out. This will ensure that things run smoothly.

• Fact Finding

The first step is to get all the relevant information needed to set it up. 

This will include how much super you already have, where the existing super is held, the insurance that you have, the name for the new SMSF, name of the new Trustee company and any assets that you may own.

• Structure

SMSFs are usually run by either a group of up to four individual trustees, with two people as the minimum, or by a corporate trust where each member will be a director.

• Appoint Trustees

Trustees will need to be appointed. Usually, they are generally appointed under the terms of the trust deed, and they should give written consent. 

They must be over 18 years of age, with no criminal convictions or bankruptcy.

• Draft A Trust Deed

The trust deed should always be completed correctly as it will contain all the rules of the SMSF. It will cover the members involved and the objectives. 

Also, the contributions made will be included and all the benefits that will be paid to people. Lastly, it should outline the process of how the fund will be terminated.

• Establish The Fund

Once all that is done, they should open a bank account in the name of the fund. 

Any personal contributions made should be deposited into it, and the application lodged to register it with the ATO.

• Operate The Fund

Once all that is done, you will need to follow some steps to make the trust operational. They include:

• Writing an investment strategy to ensure that all the retirement benefits are secured. 

You can then invest your money by purchasing shares, property, and investing in managed funds.

• You should also organise the rollovers from any existing super accounts to show proof that the fund is regulated.

• Record keeping to ensure that nothing is forgotten.

• Appoint an independent auditor to offer their services.

• Make plans for the future, such as providing insurance cover for the fund members and death benefit nominations. 

The death nomination will give instructions on what will happen to the super when a member dies. 

This is strongly recommended as this will take care of a member’s loved ones when they pass away.

With all these done, one can now relax as the hard part is now over. 

It is crucial to ensure that you do not do this alone but hire SMSF specialists or accountants to help you out. 

They will ensure that you get maximum returns from the SMSF. 

As seen above, SMSFs have numerous benefits and are a perfect way for people to secure their future while still young.

However, you must make sure that all the compliance is taken care of to avoid any penalties down the track.

If you are looking to establish a Self Managed Super Fund, or need to have your Self Managed Super Fund audited, then look no further than SMSF Pro.

SMSF Pro has years of expertise in the Self Managed Super Fund arena and is able to conduct quick and independent SMSF audits for a flat fee.

Please call us today on 1300 023 374 or message us through our website https://smsf-auditor.com.au/contact/ for all your Self Managed Super Fund requirements.