Self-Managed Super Funds are also called as SMSFs. These “do it yourself” super funds are retirement funds available in Australia and are similar to other pension funds. In SMSFs you can invest contributions. And then these provide benefits to you when you retire and provide death benefits to beneficiaries.
The main difference between an SMSF and other types of funds is that the members of an SMSF are required to prepare and implement an investment strategy for their fund, accept contributions and manage the payment of benefits. If you cannot do it by yourself, you can hire any SMSF auditor to help you. To know how these auditors can help, you can consult accountants in Moonee Ponds.
What are the requirements of an SMSF?
An SMSF must be maintained for the purpose of providing retirement benefits to members. An SMSF must have less than five members and all these members should be trustees. Investments must be entered with a view to achieving a commercial rate of return, not for lifestyle or private purposes.
If your SMSF is a single member fund, you will need to appoint a company as trustee or a second person to act as an individual trustee. You can take help from an smsf auditor in Mount Waverley for your single member funds, they can also be appointed as trustees.
No member of the fund can be an employee of another member of the fund unless those members are related. An SMSF can not lend money or give financial assistance to a member.
SMSFs are totally prohibited from borrowing. There are some limited exceptions.
Advantages of SMSFs include:
Increased control over your retirement funds and how they are invested. There are wide investment choices than other retirement funds. Your SMSF can move with you from job to job, and from generation to generation. Affords opportunities for estate planning and benefit payments
SMSFs plays an important role in retirement plans. You can visit this site to know the benefits of SMSFs.