After a lot of interaction with many new SMSF members, we have figured out top 5 traps they fall in, because they are not careful. These are tempting quick ways to invest and make money, which go opposite of the happy retirement policy of SMSF. The common traps give SMSF a bad name, because young people think its importance has started to wane.

1.  ATO compliance
All things aside, SMSF’s major role is to get you certain rebates from ATO and always be in line with the regulations laid by it. Do not try to over look them. Always follow them for better return on investment. No matter how much people tell you risk leads to rewards, but breaching ATO leads to losses and penalties.

2.  Excess Payments 
If you are investing in SMSF for retirement and you earn a set income every month, educate yourself about finances and invest wisely. Also keep aside the SMSF audit fee and other SMSF related expenses, so that you so not complaint at the end of the fiscal year. Excess payments hurt you and your investment too.

3.  Loan and borrow problems
ATO has strict laws for SMSF borrowing and SMSF loans for all trustees and members. You will need a SMSF accountant and manager who can expertly handle such situations. Do not try to do anything on your own, that can harm other investees and can backfire.

4.  Breaching Rules
SMSF is a pretty straightforward investment for life with great returns. But if you try to game the system by breaching the rules, you will face the consequences too. It is pretty evident that you need to avoid this.

5.  Using SMSF Property
Prevention is better than cure. You must thoroughly about the changing state laws and ATO rules. Each time you use property or investing into property for SMSF. People often forget checking documents and suffer later. Most loans and property debts are traps. Ask you advisor if you are not sure.

We do not mean to scare you or even give you a negative thought. But such things are easily avoidable. We at Dhan, serve SMSF outsourcing for large companies and firms. You can outsource your excess work and get an excellent outsourcing partner in Queensland, Australia.