Is A Self-Managed Super Fund Right For You?
This is a private fund that an individual can manage on their own. They are different to industry and other kinds of super funds. When you have your own self-managed Super Fund, you can invest the money you would normally give to a managed super fund into your own super fund to invest in items such as gold and silver. You are free to choose what you invest your money on and where or how you insure the fund.
Your Self-Managed Super Fund can have as many as four members who are either your friends or part of your family. You can be a trustee or you can elect an independent corporate trustees. In either case, you are responsible for what happens to the fund and how it’s run.
Being in control might sound appealing, it comes with a lot of work and it can be risky if you don’t know what you are doing exactly. You should only try to set up and run your own SMSF if you have the time and patience and are committed to learning and understanding what is involved.
The responsibilities of running a SMSFs in Melbourne
Everyone who is involved with a particular SMSF is responsible for all decisions the fund takes and complying with all the laws.
There are risks associated with responsibilities:
- It’s your SMSF so even if you get professional help, you are still liable for any decisions that the fund takes even for decisions other members take.
- The investments you make using your SMSF Melbourne might not end up making you any money or giving you the returns you may have expected.
- Regardless of the changes to your circumstances, you will still be responsible for the management of the fund.
- There are other negative things that may happen outside of the SMSF like you falling out with some of the members or members dying which could affect the SMSF negatively.
- There are no compensation schemes for people who lose their money due to fraud or theft.
What’s involved with setting an SMSF
Setting up and managing SMSF Melbourne is time consuming, expensive and it requires dedication.
You need the time and patience to set up the fund, manage activities.
Like researching investments, setting up investment strategies, record keeping, accounting and arranging annual audits by an approved auditor.
Statistics show that the average time a SMSF trustee spends about eight hours in a calander month managing their SMSF. That’s over 100 hours a year.
Again set-up costs and running costs can be quite high. These include costs associated with investing in assets like gold, accounting, auditing, getting reliable tax advice, and legal as well as financial advice.
You need to get some skills or have someone on hand who can help you:
- Understand investment markets and how to build and manage diversified portfolio which includes gold and other assets.
- Set and manage of an investment strategy that will meet your retirement needs.
- Comply with the various regulations that govern SMSFs and other related laws
There is nothing wrong with finding some advice. People’s situations are different. There is a plethora of information out there about SMSFs. Most of it is general which is why you should always seek the advice of a licensed financial advisor who specializes in SMSFs. Once it is setup you can visit your local bullion dealer and speak to them how to buy gold or silver bullion through it.