Self-managed super funds (SMSFs) are a brilliant method for investing towards for your long awaited retirement day. The Australian Taxation Office is the regulatory body for SMSFs and therefore is accountable for safeguarding the pension system by ensuring that any SMSFs comply with any rules that are specified by the income tax and superannuation legislature.
Setting up a self managed super fund is a very important financial decision as the people who will be entrusted as trustees will have a responsibility for administering the fund; as well as ensuring that relevant regulations are met. If you have made this decision and are setting up a self managed super fund, then it is vital that potential trustees understand any responsibilities and tasks that come with being a trustee. While SMSFs may be perfect for many Australians, self-managed super funds do not always appeal to everyone as managing your own super can be extremely time consuming. When establishing an SMSF, investors intending to become a Trustee should asked themselves the following two questions; do you know what must be done to manage the fund and do you know what tasks are required of a trustee?
If you establish a self managed superannuation fund, you could be obliged to perform the position of trustee which includes;
Sensible investors should always assess any advantages and expenses of running an SMSF with those of other retirement investment prospects before coming to a final decision.
The Australian Office of Taxation provides a lot of information on self managed super funds and this can be found at; http://www.ato.gov.au/superfunds/content.aspx?doc=/content/00182478.htm
The government website Money Smart is an indispensable source of information; http://www.moneysmart.gov.au/tools-and-resources