You must be wondering what is a self-managed super fund (SMSF)? It is a private super fund that an individual manages by herself. Self Managed Super Funds are separate for the industry and retail sector.
In the case of SMSF, an individual puts the money one would normally put in a retail or industry super fund into his own SMSF and choose the investments and the insurance option.
According to ATO guidelines, an SMSF can hold up to four members. As a member of SMSF, one becomes the trustee of the fund. Some People choose a corporate trustee. The main highlight of this that the individual who is a member of SMSF is responsible for the fund.
Though it sounds exciting to manage your own super, it is full of risks. One should take the help of Accountants to handle this crucial fund.
Acuity is assisting individuals with their SMSF. If you are thinking to start one, feel free to contact us today.
One should think before starting your own super fund. Take the plunge only if you’re 100% committed and understand what’s involved.
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The risks and responsibilities of SMSFs
- All SMSF members are responsible for the fund’s decisions and compliance with the law. So it better to take the help of professional accountants to handle SMSF. But you will be responsible for all the decisions related to SMSF
The Australian Taxation Office (ATO) has explained that SMSFs take time and money and you will be responsible for any loss of money. No compensation is available in this case.
You should get professional help because earning profit through it is time-consuming.
A professional will help in researching investments, setting and following an investment strategy, accounting, keeping records, and arranging an audit each year by an approved SMSF auditor.
A professional has the financial and legal knowledge to understand different investment markets and build and manage a diversified portfolio.
The team of Acuity can help set and manage an investment strategy that meets your risk tolerance and retirement needs and comply with laws.
Choose us and make a smart decision for your future.
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