So you’re thinking about starting your own self managed super fund. That’s great — but

are you aware of what’s really involved?

Let’s take a quick look at a typical self managed super fund.

When you first set up you need to • Decide on fund members and trustees;

• Establish the trust and trust deed; • Set up a bank account,

• Register with the ATO, • create your Investment strategy,

• and include a plan for when your SMSF ends

There’s more to consider once set up including • Rolling over of existing super;

• Organising employer contributions; • Accepting contributions within limits

• Making investments without breaking rules; • Regularly reviewing the investment strategy;

and • Documenting and maintaining records for

up to 10 years.

Then, each year you need to • Value assets;

Fund auditor; • Lodge the annual return,

• Pay the Self Managed Super Fund levy; and

• Any tax that’s due.

When you start making payments, you need to • Decide if any assets need to be sold;

• Ensure minimum payments are met each year; and you may also need to

• Appoint an actuary; • Withhold tax; and

• Give payment summaries to members as well as the ATO.

Finally, when the fund is finished you need to

• Get a final audit; and • lodge your final return;

plus you’ll also need to • Pay any outstanding tax; and

• Payout or rollover all of the assets.

As you can see, there is a lot involved. Before you decide to start a self managed super fund

you need to consider whether you can manage everything or whether you are prepared to

pay Self Managed Super Fund professionals to help. But remember, even if you have professionals

help, SMSF trustees are ultimately responsible for their fund.

You may want to seek some professional advice to help you decide if a self managed super

fund is right for you

For more SMSF information take a look at our other videos — or visit the ATO website at

The video misses out on a few important steps like reviewing existing funds for insurance and deciding to replace them or keep the old fund open with a smaller balance to fund the insurance. This decision must be made and any new insurances arranged before your rollover your balance as the existing cover will be cancelled and you may have a health issue that stops you replacing the cover later. For more info read my previous blog

Don’t lose your insurance cover in the haste to rollover to a SMSF.

Liam Shorte B.Bus SSA™ AFP

Financial Planner & SMSF Specialist Advisor™

 

      

Tel: 02　98941844, Mobile: 0413 936 299

PO Box 6002 BHBC, Baulkham Hills NSW 2153

5/15 Terminus St. Castle Hill NSW 2154

Corporate Authorised Representative of Viridian Select Pty Ltd ABN 41 621 447 345, AFSL 51572

This information has been prepared without taking account of your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation and needs. This website provides an overview or summary only and it should not be considered a comprehensive statement on any matter or relied upon as such.