Given the poor returns from most superfunds in recent years, many people are now thinking of putting their money elsewhere, especially many Australians considering setting up an SMSF or self-managed super fund. However, before you even think about conveying your complete nest egg to SMSF, there are several things to think so that you can make the right decision.
Most people already know what SMSF is. In short, there are different classes of pension funds in Australia. The most common types are commercial pension funds and super self-managed funds (SMSF).
The Self Managed Super Funds Service is governed by the Australian Tax Administration (ATO) rules and regulations and is usually created for a small number of people (5 or less). They are usually established under the guidance of an accountant and must be audited by an independent SMSF auditor to ensure compliance with SMSF rules and regulations.
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If you are considering preparing the SMSF for you and your family, it is important to know if and how it will actually benefit you. Even if you are not satisfied with your retirement fund, setting up SMSF may not be the solution for you.
The flexibility of the SMSF allows you to use investment strategies that industrial pension funds or private clients do not. For example, you can invest in everything from cash to managed funds, international and Australian stocks, residential and commercial real estate to art. The main thing to remember is that your investment must be made in the correct format.