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.
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.
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.
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.
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.
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.
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.
Once all that is done, you will need to follow some steps to make the trust operational. They include:
You can then invest your money by purchasing shares, property, and investing in managed funds.
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.
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.