SMSF have been thrashing other super funds with growth rate of more than 25 per cent over the past four years and $560 billion in assets. An interesting revelation is double establishment rate with 42 per cent of new funds set up by those under the age of 44!

While SMSF continues alluring later Gen X and Gen Y, this SMSF checklist becomes utilitarian:

• ‘Expert Note’ – SMSF is a winning wand, but not to all. Appoint an expert to guide you on ‘how benefits outweigh cost’.
• ‘Trustee choice’- Individual trustee and Corporate trustee framework vary from cost, penalties & succession to separation & ownership of assets. Be wise while opting.
• ‘Investment Strategy’- Preparing & reviewing investment strategy is a key point. Contemplate diversification, liquidity of assets & member’s circumstances in plan.
• ‘Signing documents’- Legal documents like Trustee Declaration & Trust Deed are compulsive. They are rule books & adhering to them shuns penalties and consequently complications.
• ‘Australian Fund?’- SMSF being an Australian super fund should be perpetual. This guarantees fair tax concessions and eschew noncompliance.
• ‘Register with ATO’- Setting up a bank account & getting ABN in your fund’s name is obligatory to manage fund operations.
• ‘Rollovers’- Scrutinise every law & policy before making or receiving any rollover. Get thorough with policies like untaxed cap, rollover benefits etc.
• ‘Exit Way’- Trust deed should cover the unanticipated & decisive ending strategies. Division of funds on events like demise of members requires mention.
  Succinctly, it is a coin with two sides; it brings flexibility & choice but demands attention, knowledge & skill. Knowledge is imparted, now checking these points & going for SMSF in most effective manner is your play.

Invest smart & know more about SMSF with our experts on 1300 707 326 or [email protected] today.