Are you considering using self managed super fund accountants for your retirement? This DIY method carries a large amount of responsibility, time and effort, yet the results may be worth it if you have a large balance and excellent knowledge of legal and financial concerns.
It is vital that you know your legal responsibilities before starting a SMSF, as you are the one responsible for any mishaps. This article covers the basics of what you need to know about using self managed super fund accountants, however it is recommended to seek legal and financial advice from a qualified professional, too.
What is SMSF, exactly?
It is essentially a private option that is regulated by the ATO and controlled by you. You can include a maximum of four people in your SMSF, but they must all be trustees, and will be responsible for any decisions made. The costs for setting one up, and running it over time, can be expensive. It is mostly used by those with a lot of money and financial and legal knowledge, though it is still a good idea to use self managed super fund accountants to assist you, too (though you will still be liable for any decisions you make).
How does SMSF work?
It operates similarly to normal ones, with similar restrictions and rules, with the aim of providing for retirement. However, it requires you to carry out certain tasks that you wouldn’t otherwise have to do:
- Be the trustee/director (which gives you legal obligations)
- Create and use an appropriate investment strategy for your level of risk and retirement needs
- Possess the financial skills and experience to make good decisions
- Have time to handle the SMSF and research investments
- Keep records and do an annual approved audit
- Budget for expenses like tax, financial advice and audits
- Prepare insurance for members
- Only use the money for retirement.
Seeing an advisor
When selecting self managed super fund accountants, it is imperative that you use a licensed one. They will help you assess the pros and cons of starting up an SMSF, and may assist with your investment and administration decisions. However, they will not be liable for any decisions you make.
Using a robot
While traditionally advice has been given by a human being, robo-advisors are beginning to emerge and provide clients with financial advice delivered by a computer. This can be a cheaper option to using a person, but it comes with limitations and might not be of as high quality as a real person.
You might also want to get ongoing advice from self managed super fund accountants. This depends on your specific needs, however whatever you choose, ensure your advisor is licensed in your state. You can check this on the ASIC online register.
Consider other options
It is a good idea to assess your other options for retirement financing. There are other DIY options, such as term deposits and shares, which give you a decent degree of control regarding your investments, without having to worry about the administrative and legal responsibilities you get with self managed super fund accountants.
Alternatively, if you aren’t happy with your current provider, you might want to consider swapping to a different option.
There are many factors to consider when deciding whether to use self managed super fund accountants, and it is important to do your research. It is important to be aware of online scams, and to read advice from the ATO before making a final decision. You need to be completely committed before starting an SMSF.