A self-managed superannuation fund has gained popularity among the working or white-collar masses in Australia. Superannuation means putting away a sizeable amount of income into a separate fund on regular intervals only to receive regular incomes later during one’s retirement stage. SMSF are regarded among lucrative alternative to save for retirement.
Benefits to a trustee
• Investment decision
Perhaps, the best reason why the popularity of Do-It-Yourself funds is autonomy in taking investment decision for the funds. A trustee in the fund has some options to invest his or her fund. SMSF offers maximum control of making investment choices. Moreover, along with investments, a trustee takes control over how the funds are to be operated a well.
The fund can be invested in a wide range of sectors, from real estate to shares market; it is up to the members in the Fund.
• Taxation benefit
If you decide to set up SMSF, you will be able to enjoy sizeable tax recession paid against the fund. Based on the Australian Taxation Office (ATO) guideline, members in an SMSF only have to pay 15% tax, which is further curtailed based on other tax credits.
• Low cost
As these are self-managed superannuation funds, the cost of setting up and maintaining a superannuation fund is considerable low. In comparison to operating a retail or large funds, SMSF is far more reasonable.
• Secured assets
In cases like insolvency, one’s asset remains protected from creditors or lenders if superannuation fund is self-managed.
However, it is important to consider that only well-maintained funds, which means in compliance with rules are regulation laid by the governing body, are eligible to enjoy benefits of a self-managed superannuation fund. Everyone may not be well-equipped with the knowledge of monitoring and controlling such funds. In such cases, SMSF specialists and advisors act as perfect guides to help trustees through the technical aspect in these funds. Charging a nominal SMSF fees, advisors will take care of the following.
• Setting up SMSF
• Transfer of existing funds
• Administration and compliance
• Borrowings and investment advisory
Having control over funds brings many responsibilities forthwith. As an active member in the fund, trustees are liable to manage funds, regarding monitoring investment, accounts and transactions made against the fund. However, duties performed by Trustees are not remunerated in any way. The SMSF Accountant will assist members in understanding its process and making property investment decisions, based on the current market scenario. You only need to look for the best accountant of financial adviser