Super Funds

Is a Self Managed Super Fund the Way to Go for You?

Many people these days have decided to go the way of a self managed super fund. They think that it will help them save on fees if they do it all themselves. However, in spite of the fact that the name implies that you do all the work yourself, it is actually not legally possible, unless you are a qualified accountant or lawyer.

You must get help with your smsf if it is to remain what is called compliant. That is, it ticks all the boxes of what the government requires to have done when you manage your own super fund. One of the main troubles you might have with running your own fund is keeping up with all the changes in the rules. You may know everything today, but next week there are more rules, or some of the present rules have been changed. It is not easy to stay on top of it all unless you have help.

It is not only in setting up the fund that help is needed, but you have to have an audit every year and this cannot be done by the trustees. It has to be done by someone who has no personal interest in the smsf. Therefore you will need to bring in an accountant or contact a company who offers such a service.

The smsf audit is nothing to worry about if you have followed all the requirements. Even if you have accidentally left something out or not done something that you should have, you will be given time to fix the problem. It’s not like you will be thrown into jail or sent a stiff fine the next day. However, you do need to show that you are willing to work on the problem.

Some companies offer Smsf tax and audit services and this will save you worrying about anything with that self managed super fund. Yes, it will cost you to have it done, but there is no getting around that. And if you work it right, then you will still save the management fees and the low returns of a fund that is not self-managed.

However, it does take a great deal of work and responsibility, so if you would rather use your free time for leisure maybe a self managed super fund is not for you. Only you can make that decision. If you are the kind of person who likes to be in control of all your finances, then smsf is the way to go.