you live in Australia and have ever considered establishing your own SMSF (or self managed super fund), you’ve come to the right place. Today we’ll walk you through all the steps required to set up your own SMSF and what happens after that. Just follow these simple steps and you’ll be ready to go in no time!
Where do I start with an SMSF?
The first and most important thing to continue when looking to establish your self managed super fund is knowing exactly what it is. Don’t go into any financial decisions blind; make sure you’re educated in what you’ll be getting when you establish. A SMSF is a type of superannuation trust fund. With this type of fund, you are your own trustee and control more of the money. You also can appoint other trustees (with caution as they will have access to all of your money and the ability to make changes at will). The reason most people choose a self managed super fund is because of the amount of control you are able to have over your own money. The next step is to choose a service provider, which we’ll discuss below.
How to choose a SMSF service provider
Start by asking your friends and family if they have any recommendation for reputable service providers for SMSF. If you don’t have any friends or family with experience, a quick internet search should be able to get you want you want. Just make sure that you look at the reviews thoroughly. The longer they have been in the self managed super fund business the better. You don’t want a new service provider that has no experience in the industry, as this can lead to costly mistakes. They will also guide you through the SMSF process, which involves either starting a new superannuation trust fund or transferring money from one type of trust fund into your new SMSF.
Other things to remember
The good and the bad thing about your self managed super fund is that you are ultimately the one in charge. If you don’t have a lot of experience with this sort of fund, it’s a good idea to seek out a financial advisor that can at least help guide you through the do’s and don’ts so that you don’t make any rookie mistakes. Don’t make any sudden changes without consulting your financial advisor as well, as sometimes small changes can lead to significant financial ramifications. Also make sure you consider any potential out of pocket costs associated with starting or transferring your SMSF. They can be potentially significant.
When considering switching from a regular trust fund to a self managed super fund, or when starting with one, make sure that you do your research. It is often a complicated process getting an SMSF started and you’ll need a good plan and financial advisor in place before making the leap to ensure you have all your i’s dotted and t’s crossed.