Running your own super fund is becoming an increasingly popular strategy. This information is especially useful if you are currently a SMSF trustee, or are thinking about becoming one.
What is a Self Managed Super Fund?
- Has less than 5 members;
- Each individual trustee of the fund is a fund member;
- Each member of the fund is a trustee;
- No member of the fund is an employee of another member of the fund, unless those members are related;
- The trustee can be a corporate entity;
- No trustee of the fund receives remuneration for his or her services as a trustee; and
- A SMSF is registered with, reports to and is regulated by the Australian Taxation Office
Setting up an investment strategy
The trustees of an SMSF are required to prepare and implement an investment strategy for the superannuation fund. The strategy must reflect the purpose and circumstances of the fund and take into account:
- How to maximise member returns while having regard to the risk;
- Appropriate diversification in a long term investment strategy; and
- The ability of the fund to pay benefits as members reach retirement, and other costs incurred by the superannuation fund.
Trustees must make sure all investment decisions are made in accordance with the documented investment strategy of the fund and should seek investment advice or appoint an investment manager in writing if in any doubt.
View research commissioned by ASX demonstrating the growth in popularity of SMSF and the current landscape in which they operate.
SMSF Education & Roadshows
ASX investor roadshow - Self Managed Super Funds
Taking control of your retirement savingsWith the recent underperformance of many managed super funds, running your own and taking control of your super is becoming an increasingly popular strategy. However, it isn't as simple as just setting up an account with your broker to be ready to start trading in your Self Managed Super Fund. There are government obligations that must be met, an investment strategy to put in place, and finally, not all products listed on ASX are allowed or suited to an SMSF. This roadshow will cover these points and is aimed at both existing SMSF trustees and those thinking about becoming one.ASX provides a range of online classes for people interested in investing in the share market. These are general classes and are not SMSF specific.
Finding an SMSF adviser
What to look for:
- Efficient low cost administration;
- Full explanation of the requirements and responsibilities of trustees of SMSFs;
- On-time annual reports plus performance updates and newsletters;
- Availability - can you reach your adviser easily?
- Competitive fees for investing, management & insurance premiums;
- Clear detailed information on investment strategy, performance targets, investments and managing investment risk;
- Track record for showing returns to trustees and all fees and costs;
- No large outstanding legal claims or one-off costs.