To understand how to run our own SMSF, let us understand what Self-Managed Super Fund (SMSF) actually means. A self-managed super fund is a private superannuation fund that you manage on your own. SMSF is standardized by Taxation Office of Australia. All members of this fund should become the trustees or directors (In case of a corporate trustee) and the members are completely responsible for all the decisions made in and about the fund. Any SMSF can maximum have up to 4 members. Do not mistake an SMSF to the mainstream funds which are regulated by APRA (Australian Prudential Regulation authority), in the mainstream funds members pool their savings and invest from them.

Basically an SMSF is a tax structure (legal) and it is only made for the purpose of assisting you in retirement.

Running your own SMSF can be a daunting task, listed below are few step you need to comply with if you own/partly own an SMSF.

• You must use the money only for benefits upon retirement
• You must carry out the role of a director of a trustee of the fund, important legal duties will be imposed on you.
• You are responsible to formulate the investment strategies which make sure that your SMSF meets the needs of your retirements.
• Arrange an audit annually by an SMSF auditor (approved) and keep comprehensive records of everything involved with the SMSF.

Things that you need if you are responsible for an SMSF:

• Obviously, a large sum of money for the set-up and making the annual running costs worth something
• Time to manage, research and invest in the fund.
• Skills to make proper, logical investment decisions
• Good Financial experience
• Life insurance organizing, this include permanent and total disability cover and income protection.