Starting a self managed superannuation fund is something a lot of people think about doing to be able to fully control their assets and benefits they get from their superannuation fund. This is not a simple procedure, and there are many things you need to keep in mind to start a self managed superannuation fund that is both legally valid and can give you the best possible financial solution. In order to set up a successful self managed superannuation fund, there are a few things you should think about.
Providing for members
Your only purpose of starting a self managed superannuation fund should be that you want to provide for the members when they retire. This also needs to be considered even if you are the only member of the fund. This is also a good guideline to consider when dealing with your investments. If your members are close to retirement age, you might want to make low risk investments. They don't pay back as much as high risk investments, but high risk investments with money that needs to be paid out relatively soon is rather irresponsible and can decrease the sum your members get from the superannuation fund.
What the money can be spent on
Also remember that you can't get any economical advantages from your superannuation fund before you retire. It's illegal to use your superannuation money to pay for things before you retire, even if you only lend money from the fund that you then pay back. You're also prohibited to spend superannuation funds on your business or company, even if the superannuation contains members that are also part of your business. It's possible to use the superannuation money for investing in items that you don't benefit from financially until after you retire. You can, for example, buy collectibles that you don't sell or exhibit until after you retire.
You should also avoid presuming that you will be able to handle your superannuation fund all by yourself. Having a self managed superannuation fund will create a lot of paperwork each year. It also requires quite a lot of knowledge about finances, as you'll have to know the correct market value of all of your assets in order to prove that your superannuation fund is legal and legitimate. The best thing to do to handle these situations without risking failure or miscalculation is to hire an auditor that can help you with the paperwork and calculation and make sure that everything is up to standard. You don't need to hire an auditor full time to handle your superannuation, but for your annual reports, they can be very helpful.Share