Thinking of an SMSF setup but are in a dilemma because of certain points that you keep on hearing time and again? Well, fret not as more often than not, the points are nothing but myths. Today, we will take a look at some of the myths, which are associated with Self Managed Super Funds :
- It is way too hard to manage : This is one of the most common myths that are related to SMSF. However, the fact is that it is easy to setup and run and all that you have to do is to abide by the rules and regulations to manage it.
- You cant invest the fund : Mostly SMSFs are used as a retirement option. But this doesnt mean that you cant invest the fund in more places than one. For instance, you can opt for SMSF property investment.
- Earning truckloads of money is a must for SMSF : This is another false notion that is associated with SMSFs. Having a large income is definitely not a prerequisite for SMSF setup.
So, what are you waiting for? Research more on this wonderful investment option and go for it today!
Source : http://smsfaudit.blogspot.com/2013/11/3-myths-which-are-commonly-associated.html
SMSF or Self Managed Super Funds are one of the most invested funds in Australia. In fact, SMSF setup is quite popular with those, who are planning to invest some amount of money for their retirement. This is one of the reasons why SMSFs require their own rules and regulations be it administration or tax compliance. Today, we will take a look at some common but important tips, which will help you know about SMSF administration :
1) If you have any new trustee for the SMSF, make sure that he or she knows all about the compliance requirements for the same. Suppose the trustee is someone close to you, then you must personally take the initiative to educate the person all that you know about the SMSF. This will make it easy to manage the fund.
2) An experienced professional should be your first choice when it comes to SMSF administration. This is because they will find it easier to take decisions, even in the face of crisis. However, even with the help of expert professionals, you should keep a close watch on your SMSF particularly when it comes to investment choices.
3) Another important tip is to understand the importance of reporting. You must ensure that you keep a close watch on each and every accounting records, forms and other things related to SMSF audit. These are what will help you maintain your SMSF in a more efficient manner.
So, these are just a handful of tips that will help you manage your SMSF efficiently. Keep watching this space for similar topics such as SMSF property among others.
Source : http://smsfaudit.blogspot.com/2013/11/3-quick-tips-for-managing-smsf-setup.html
Are you looking forward to an incredible investment option that helps you after you retire? If your answer is yes, then an SMSF is the best option for you. Now those of you who are not familiar with what is smsf, let me tell you that it stands for self managed superannuation fund, wherein the funds are held and managed by a group of trustees.Each trustee is also the member of the fund, who all benefit by the funds money after their retirement (or their families in case of death).
Usually the process of setting up an SMSF requires creation of a trust deed, appointment of trustees, filling up certain forms, opening of a bank account, putting an investment strategy in place and so on and so forth. Moreover, you also need to know some basics about financial terms and other things relevant to the administration of the fund such as smsf borrowing.
There are numerous benefits associated with SMSF, some of which are as follows :
1) here has been tremendous growth in SMSFs over the past few years in Australia
2) You get immense control over the super fund and get flexibility in terms of investing the same
3) SMSFs are great when you want to avail various tax concessions
4) As compared to other superannuation solutions, costs of running an SMSF is much low
5) You can include insurance in your SMSF as a measure to protect both your income and assets
This was all about SMSF in brief and what are some of its advantages. I do hope that it gave you a better idea or at least a basic idea about the same. Do let us know your opinion through your comments. Good luck!
Source : http://smsfaudit.blogspot.com/2013/10/what-is-smsf-and-why-should-you-prefer.html