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Thinking Of Setting Up Your Own SMSF?

Self-managed super funds operate like any other super funds. The contributed funds are invested in a wide range of managed funds, high-interest cash savings, time deposits and other financial instruments. But unlike superannuation funds managed by an independent fund manager, self-managed super funds are managed by the member, where the member is also the trustee. Thus, the decision as to where to invest the contributed funds lies on the member himself. Also, the member decides when benefits are paid. To put it bluntly, the member has full control of the funds.

If youre interested in setting up your own self-managed super fund, it is best to consult with a licensed financial planner first. You need to be aware of the superannuation laws that apply the basics of investing and how to leverage your investments in various securities and market conditions. It will also help you decide whether a self-managed super fund is right for you.

It is important that decisions are made in compliance with the agreed investment strategy. Should any deviation from the strategy arise or if members are uncertain on decisions to be made, they should consult with an professional investment manager.