Every one of us is always thinking about the future. Even those who can hardly feed themselves three times a day will still strive harder just so that they can save for their future. The government is also quite aware of this thus they urge and even obligate companies, private or government to provide compensations to their employees so that after they retire, they can get remuneration. This is what inspires SMSF. What is SMSF? First of all, this means self managed super funds. The difference of SMSF from other super funds is the fact that the members are also the trustees. Because of the fact that this kind of super funds will just have 4 members at the most, they can easily tailor the funds so that their individual needs will be met. This is not the case with the other types of super funds as they have many members thus they aim for collective interests.
So, how does SMSF work?
With this type of super funds, there are two alternatives when it comes to trustee structure and they are:
– Corporate trustee – here they will designate a company, like maybe accounting firms as they trustee and each of the members will be the directors. With this type of structure, you can expect things to be done simple like the recording as well as the registering of assets, flexibility in the membership and providing administration efficiency.
– Individual trustee – here each member will be the trustees and there should be at least two trustees thus there should be at least two members.
What is the role of the designated trustee?
The trustees will be the one to manage the funds like they are responsible in the deciding about the investments to take and its implementations. He should also be transparent so that if any member of the group will check about the funds, he can provide clear records. He must also be the one to deal with the tax aspects and at the same time, organize an independent audit. This is just one of the reasons why, most SMSF will engage in an accountant so that their funds, especially the complex tax returns will be dealt with accordingly.
What are the benefits of SMSF?
– Can provide more investment options compared to the other types of super funds
– More alternatives when it comes to tax options
– The system is more flexible as trustees have more control in their investment mix so that they will be more advantageous for them
– This offers significant transparency so that each trustee will easily see where his invested money is going and what he can expect from it.
There are still so many things to learn about SMSF and you can easily check SMSF Brisbane online. Yes, all of us have our own free will which path to take when it comes to ensuring the future of our family. It will be up to us how to see things.