An SMSF or Self Managed Superannuation Fund is a plan where members are in control of their superannuation funds. Here, superannuation means long-term saving plans designed to help individuals during their retirement stage. These are primarily retirement funds wherein members of the fund make deposits at regular intervals.
A self-managed super fund is managed and controlled by the individuals themselves rather than the provider. The major difference between a self-managed superannuation and other regular pension funds is that in self-managed funds the members become the trustees. As trustees of the super funds, a member should remember the following
- An SMSF can have the only maximum of five members or less at a time
- The members are called trustees and are supposed to perform all the duties of a trustee to the fund
- An SMSF account in the name of the trustee is to be established
- No member in the fund can be employed by another member in the same super fund
- If the super fund has corporate trustees, each member of the fund is a director of the company
- For performing the responsibilities of a trustee, an individual does not become entitled to any remuneration.
SMSF Loans are a unique way to save for one’s retirement. This method to save for retirement is one of the most popular among working individuals, employment or self-employed people in Australia. A unique advantage of establishing a self-managed superannuation fund is that trustees get the benefit of taking decision for the funds instead of a third party managing super funds. A member can take investment decision according to their preferences. In an SMSF fund, a trustee has the freedom to invest in real estate, shares and more.
However, along with authority comes certain responsibility towards managing one’s superannuation funds as well. Conducting regular audits is one among many duties of a trustee in a self-managed super fund. Many advisory firms offer their expert services to take care of these tasks. SMSF auditors are an important service offered by such SMSF specialists. You cal always maximize your benefits with SMSF audit. The SMSF auditors bring expertise that a member in the super fund may not have that is knowledge in accounts and maintaining accuracy in recording transactions.
Right from establishing an SMSF, to maintaining accounts and advising on investment strategies, an SMSF advisor will be able to assist trustees with everything. SMSF Specialist will assist in charting out investment strategies for super funds. Monitoring of funds on a regular basis is another benefit of hiring experts to manage and audit your SMSF.