Establishing a self managed superannuation fund (SMSF) is a decision many Australians have decided to take, usually to have greater control over their investments than they have with an industry or retail fund. A SMSF is more suited to people with financial and administrative experience, and a substantial knowledge of the investment industry. It is also strictly regulated by the Australian Taxation Office (ATO) under a series of rules designed to protect the retirement investments of the fund members.
SMSFs Not Suitable for the Average Worker
An SMSF needs a very substantial amount of money to start it off, so it is more likely to be a vehicle for people in high income brackets rather than the average worker. It is not a vehicle for holding the investments of a large number of people. It is restricted to between one and four members, with each member also being a trustee of the fund. If there is a corporate trustee, the members are also directors.
The regulatory and administrative requirements are quite prescriptive, and deadlines are attached to the lodgement of documents and records with the ATO. This makes the running of the fund a complex issue for people unaccustomed to ealing with this type of legislation. Many fund trustees prefer to engage an SMSF professional to deal with the administration and to give advice on SMSF Brisbane investing.
Specialist Professional can Assist with Fund Management
There is a number of specialist professional companies like Affinity Accounting Plus that will provide this service for their clients. Running an SMSF requires a lot of time and attention to investment types and movements in the market. Having a professional to assist frees up the fund trustees to engage in other pursuits, but what they must realise is that they are still personally liable for the decisions made by the fund. This is a responsibility they cannot delegate.
Beware of Scammers
With the SMSF industry growing at a healthy rate, it has become a target for scammers. Fund trustees must be very sceptical about people who advertise their services but are not qualified in this specialist area. A typical scammer advises people to transfer their superannuation to an SMSF, then either claims an exorbitant commission or steals everything.
Scammers target the unemployed, people who are in debt and those from non-English speaking backgrounds. These are all vulnerable people who would likely not know the restrictions around withdrawing money before age 55-65. Such an action can attract tax penalties and if the scammer has convinced them to sign false statements, they could also be fined.
Only by placing your SMSF in the hands of trusted professionals like Affinity Accounting Plus can you be assured that your money is in experienced and ethical hands.
