People can set themselves up for retirement in a number of ways to ensure financial security and comfort. Recently, it has been increasingly popular to set up and monitor a self managed super fund (SMSF), a type of retirement fund that differs largely from the traditional kind.
With a SMSF, investors can feel like they have more control and flexibility over their funds. The main point of difference in a SMSF is that all of the members are trustees and can make executive decisions about investments and financial movements.
With a SMSF, trustees take on responsibility for all of the operations and financial movements within the fund. SMSFs offer more freedom with investments, allowing holders to invest in properties, shares, businesses, assets and more. However, there are still strict government regulations and rules that trustees have to abide by in order to set up a SMSF.
These kinds of funds are mostly recommended for people who:
Before taking the plunge into setting up a SMSF, you should ask yourself: do you have the time to properly monitor it? Do you have the funds to cover the set up costs and annual running fees? Who can you contact for financial assistance and advice?
The sole purpose of a SMSF is to ensure that you’re financially set up for retirement, so it makes sense to carefully abide by the regulations for running a SMSF. Unless you’re experienced in the financial field, it’s recommended that you have ongoing contact with an advisor for routine audits and monitoring.
Speak to one of the professionals at Gavin Ma & Co today about setting up a new fund and properly preparing yourself for your future.