Seeking control over your retirement investment? A self–managed super fund can indeed be an attractive option. However, SMSF is a major responsibility. You get it wrong, you may end up with strong financial impacts.
We spoke to our most experienced accountants and created a short guide for you to understand if self-managed super fund is the right option for you?
So, what exactly is an SMSF?
An SMSF is a trust fund, where an arrangement is made, in relation to a person or a company (trustee) that holds assets for other individuals (also called the beneficiaries).
A trust must have a trustee, beneficiaries, assets and trust deed.
With SMSF, the purpose is to manage assets of the created trust, for the benefit of its beneficiaries (members) – when they retire.
Speaking in general terms, it is illegal to benefit from the SMSF (if not created for its sole purpose). According to our accountant, Anaiyat Ulah, who mentions that “it is illegal to use the funds for the following: