Pondering over do’s and don’ts is really important in any financially investment you make. SMSF is Australia’s very own membership investment fund which allows you to secure your post retirement. You can get cash returns and many benefits and SMSF is the most flexible investment scheme with minimal risk. ATO’s even recommend it if you want to save your taxes and plan your future properly.

Not everyone can invest in SMSF and reap profits. It is a fund that grows over the years and brings flexibility in your life from the financial side. You can invest, borrow, plan for retirement with a good SMSF fund.

Here are 7 things you should know before setting up your SMSF, invest wisely and live well.

1. Initial investment to begin
Please find out the initial investment to begin your SMSF fund. Do not jump right in with the prospect of a happy future, it is often not for everyone. If you can invest around 200,000 every year, you can start an SMSF fund.

2. Investment Strategy
Not everyone is good at number crunching. So it is essential to have an investment strategy in place. Think of it like a plan that can lead to a flexible and bright financial return. Consult a financial advisor if you are unable to figure something out. Do not tread alone in the dark. You may not know the market at all.

3. Gain Knowledge of running a fund
We suggest you to read and suck up information if you are really motivated to manage your SMSF all by yourself. There is nothing wrong in being financially wise. It takes time and effort. But if you pursue it with interest you can gain knowledge before you start setting up your SMSF. After that running it will be easy and smooth for you.

4. Tax management
Investments and savings also help you save taxes by showing receipts of your SMSF fund review. For ATO to give you any kind of tax offset, you must be compliant with their norms. Learn about tax management whilst SMSF, before you begin.

5. Estate Planning
All trustees of the SMSF funds need to plan regarding their estates together or the mortgages they are paying on it. Or what happens when someone dies and who becomes a trustee then. Estate planning rules of the court on SMSF properties vary in different Australian states and territories. You must know about this thoroughly before setting up your SMSF.

6. Risk v/s Capital Gains
While tax exemptions are great with SMSF, but there is surely a risk associated with volatility of your investments. Diversification of assets in different classes can help you mitigate this risk. But most newcomers who begin the fund don’t know about that. Coming to the capital gains, they are long term and help you in the long run.

7. SMSF Members and Trustees
You can outsource SMSF management to professionals but your SMMSF members and trustees still need to be similar in thought and decision making. Otherwise they will not come to a decision and the fund will suffer.

As best SMSF outsourcing firm in Queensland we urge you to learn and know these 7 important things before setting up your SMSF. Only then you will be able to have the financial flexibility and happiness a SMSF brings.

Want to know more about SMSF? Contact our experts on 1300 707 326 or [email protected] today.