The self-managed super fund is a fund that you manage yourself and gives you more control and flexibility over the investments. Several points must be met for you to start these funds. First of all the trust deed must meet the requirements set. It must have four or fewer members, and each member of the fund must be a trustee. Another rule here is that no members of the fund must be employed by other members of the fund, and none of those trustees must receive any financial reward for their services towards the fund.
These self-managed funds will perform the same role as the independently managed funds. Here by investing contributions the members make them available to the fund – of course as there are multiple investors this creates more capital for the group than one individual could obtain on their meaning greater returns. The money donated to the group is then returned to the members upon their retirement along with interest made on their investments. What is different however is that the members here are also the trustees and can then control where the money is invested and how it is increased.
This has many benefits for those who are happy to put in the extra time and effort. For example, it means that the trustees can feel safe in the knowledge that they are investing the cash themselves – that way they have full control and they can feel as though their profits are in their hands. This way they don’t have to worry that their money will be invested poorly without their consultation and end up lost as a result. This also gives the trustees more flexibility – as they are running the fund they can decide on how much and when they contribute etc., as well as the nature of the industries they invest in. Finally, some people will also actually enjoy having this kind of involvement in their finances, and can also feel a sense of satisfaction from it.
However, there is a lot more responsibility on the part of the trustees. For example, they must ensure to invest the money wisely, and each of them will be responsible for the success of everyone’s investments. At the same time, they must ensure the fund complies with the law, keep their records at all times in case these need to be checked over, ensuring the funds are in the correct names and informing the authorities of any changes, working together as a group. The annual audits must need to be submitted to the ATO as required by law.
If the member cannot do the audits themselves, they need to hire a professional who will help them with the SMSF audits. Such professionals can also help in smooth running of the fund by giving advice where necessary. If you are looking for such a professional or if you need your SMSF audited, visit superaudits.com.au for online SMSF audit all other professional services that might help you run the SMSF smoothly. These professionals are highly qualified and certified in what they do. You need not worry about the charges because they are very friendly. Visit them for more information.