People have been concerned with their income ever since the dawn of time. It’s only natural to have this concern because everyone wants to have a decent life, enough food on the plate, money to pay the bills,a roof over their head and something aside for life’s simple pleasures like a holiday every now and then and some shopping. In other words, we all want to live day in and day out with at least a bit of assurance of a promising future. However, life can be rather unpredictable, particularly now that the retirement age is constantly varying, so little can be said at what age we’d get to retire and whether we’d have our pension or not. As luck would have it, though, there’s a step, one that continually grows in popularity – we can take to ensure our future and it’s called SMSF.
The SMSF (Self Managed Super Fund) is a private superannuation regulated by the Australian Taxation Office that provides the option to the members to receive remuneration in retirement. As statistics show, the number of Australians setting up their own SMSFs keeps on increasing which shows just how prudent of an option it is and explains its popularity. Having the chance to manage it yourself, plus, borrowing to invest are more than reasons enough to consider it as your financial security step. However, since there are ATO rules to comply with, such as the sole purpose of the fund (i.e. receive money from the fund only upon retirement), you have to make sure you are well informed on the SMSF setup costs, documents and fees you’d have to pay so you avoid breaching and getting fined.
Of course you can cut on expenses by taking matters into your hands, but to be on the safe side, it’s advisable to seek professional help, consult specialists who can guide you through the whole process of setting up the fund, covering the SMSF setup costs and paying the fees. There’s a difference in the setup costs based on the kind of members a fund consists of, so for individual trustees it’s $150, whereas for corporate trustees $1,100, and the monthly charges for fees $39 for the basic option and $79 for the advanced. Once you’ve got that covered, it’s important to start with the document preparation – establish the trust deed that’s going to be properly prepared and saved by the SMSF provider with all the rules members must abide by, and keep track of your finances with the SMSF audit.
It’s also crucial to have a declaration that every member gets to sign, showing they know and agree to go through with their obligations as trustees. The final step of the SMSF setup is getting registered at the ATO, receiving the ABN (Australian Business Number) and opening up a bank account that’s strictly meant for the fund, separated from other finances. Part of the administration fees is organising the tax returns and accounts. It may sound a bit confusing at first, but once you have the right professional guidance and keep up with your obligations, you can be sure of your secure financial future and join the club of many satisfied Australians.