How can I manage my own super but still receive advice?
When it comes to managing your own super there are many benefits with setting up a Self Managed Super Fund (SMSF) and at the same time many responsibilities you have to take on as a trustee and member of your own super fund. However, this doesn’t mean you cannot receive professional advice on how your super money should be invested and the implementation of an investment strategy that aligns with your fund’s investment goals and objectives.
Many trustees or members of an SMSF enjoy the benefits of running their own super fund. They especially like the decision-making process and the control they have in how they want to manage their super money. Instead of placing your super money into an established super fund where it is managed for you, you get to make those decisions and decide who else can become members of your super fund.
What’s really involved in a SMSF?
This video by the Australian Tax Office (ATO) explains the ‘ins and outs’ of running a SMSF which are summarised for you below.
When you first set up you need to:
- Decide on fund members and trustees
- Establish the trust and the trust deed
- Set up a bank account
- Register with the ATO
- Create an investment strategy
- Include a plan for when your SMSF ends
Once you’re set up, you need to:
- Rollover existing super
- Organise employer contributions
- Accept contributions within limits
- Make investments without breaking super rules
- Regularly review investment strategy
- Document and maintain records
Then each year you need to:
- Value assets
- Prepare accounts and financial statements
- Appoint a SMSF auditor
- Lodge annual SMSF returns
- Pay SMSF levy
- Pay tax due
There is quite a bit of work and careful management involved in managing your own super but you can receive help from professionals to help you with the fund’s investment strategy, auditing, tax returns, compliance matters and so on. However, it’s important to know the trustee (you) who is ultimately responsible for all matters surrounding their fund.
Who are the professionals you can get help from?
Even though an SMSF is regarded as a Do It Yourself (DIY) super fund, you cannot manage it all on your own. You will need help and advice from different professionals to keep your SMSF healthy and in good shape so you don’t up paying for poor decisions and mistakes.
The ATO highlights the different professionals you can call upon for help. They are:
- A SMSF Auditor who is registered with ASIC (Australian Securities Investment Commission) to complete your fund’s audit each year.
- A qualified actuary to provide you with an Actuarial Certificate.
- A valuer to help value your assets at market value each year.
- An administrator who can help manage the day-to-day operations of the fund.
- An accountant to help prepare financial accounts and statements each year.
- A tax agent to help lodge tax returns.
- A financial planner to guide you on wealth and on estate planning strategies.
- A financial planner or an investment manager to help you choose and monitor fund investments.
There maybe a need to consult other professionals not listed above for specific or particular needs but you may want to consult a SMSF Advice Specialist initially. They can help you decide whether an SMSF is right for you, and if it is, help set it up and assist with the ongoing management of the fund but with you firmly in the driver’s seat.
The information contained on this website has been provided as general advice only. The contents have been prepared without taking account of your personal objectives, financial situation or needs. You should, before you make any decision regarding any information, strategies or products mentioned on this website, consult your own financial advisor to consider whether that is appropriate having regard to your own objectives, financial situation and needs.
