Self Managed Super Funds Explained

Self Managed Super Funds (often referred to as DIY super funds) have been a very popular alternative for people wishing to have more control over their superannuation arrangements.

A SMSF is a superannuation fund that has less than five members and is often used as a superannuation structure for family members.

SMSF’s are popular because they may provide investors with one or more of the following advantages:

1. Members have control over the day-to-day management of their fund,

2. The ability to transfer certain assets such as listed shares and business real property, currently held outside super, into a SMSF,

3. Access to investments not generally available through other types of superannuation funds,

4. The opportunity to access a variety of superannuation income stream options in retirement,

5. The ability to structure estate planning strategies ensuring that superannuation benefits are passed to the next generation in a timely and tax effective manner.

The distinguishing feature of a SMSF requires that each member must be a trustee of the fund (or a director, where the trustee is a company).

However, being a trustee and member of a SMSF carries responsibilities that need to be appreciated before taking on this role. If you are considering establishing a SMSF, your financial planner can be an excellent source of information on the role and responsibilities of becoming a trustee of a SMSF.

If you require any further information or assistance, please contact David Maynard or Christian Tapia, on 07 3208 3888. David is senior accountant for My Tax Zone and Christian is an Authorised Representative of Professional Investment Services and they and their team will be able to provide you with taxation structure and financial planning advice to suit your present needs and future goals.

(source Professional Investment Services)

Copyright 2014. My Tax Zone.