What is a Self Managed Superannuation Fund (SMSF)?
A SMSF is independently established and controlled by an individual. This means that you are personally responsible for complying with legal requirements as the trustee of your SMSF. It is a way for saving for your own retirement, and rather than just being a member of a super fund, you are also the trustee – which comes with both greater flexibility and responsibility.
If you are considering a SMSF it is critical to speak to professionals who can guide you through the processes – as there are legal requirements you will need to comply with.
Although a big responsibility, a SMSF doesn’t have to be a daunting task. With the right help, it can certainly have benefits and is an increasingly common choice. Some benefits of a SMSF include:
- Flexibility: Everyone is different – we all have different ideas about our retirement and how we plan to spend it. A SMSF gives you the flexibility to tailor your super to suit your needs into the future, rather than a “one-size-fits-all” approach;
- Investments: As trustee, you get to decide what assets the SMSF will invest in – including how and when they are invested. Furthermore, you usually have a wider range of investment options that are not always available with other funds, such as direct property investment.
- Cost savings: Running a SMSF can be more cost-effective over its life compared to commercial super funds. The cost savings will depend on your individual circumstances.
- Control: Ultimately, you are in control of your superannuation fund which means you can make unique decisions about your financial future that simply aren’t available to members of commercial super funds.
Despite the benefits of flexibility, control, potential savings and better return on investments, being a trustee of your SMSF is something that will require more time and effort than simply being a member of a super fund. It is essential that you understand the laws and processes in order to benefit.
Here at Brealey Quill Kenny we have a team of SMSF accountants who can provide tax and accounting services to ensure the smooth-running of your SMSF. For expert Perth accounting services including SMSF tax and accounting, please contact us.