What is a Self Managed Superannuation Fund?
A Self Managed Super Fund (SMSF) is a small super fund established for 1-4 members. The members are also the owners of the fund and therefore control the fund. As control is kept in the hands of the members, it is the members who decide how the fund will operate and what investments the fund will invest in.
How Does a Self Managed Superannuation Fund Work?
A SMSF is a means to managing and controlling your superannuation money through establishing your own superannuation fund. Super is a method of saving and investing money during your working life. This caters for your retirement. A Super Fund is set up by a Trust Deed. The Trust Deed contains the rules of the Fund. A trustee, who holds and invests the trust property on behalf of the members, administers it.
For a start, you need four or less members. Members of the fund also have to be trustees of the fund. Trustees of the fund have to be members of the fund. Each member is required to participate in the decision making process of your fund. To protect all members of your fund, no member can be the employee of another member. The only exception is members who are “related”.
To find out more about starting a SMSF contact Laura Dean Financial Solutions on (02) 4296 1068 or go to www.lauradean.com.au.
Find out about the next Self Managed Super Fund Free Information Seminar
Grant Abbott
Grant Abbott is Australia's leading SMSF advisor, author and presenter. Specialising in the SMSF industry since 1994 he has presented on a wide range of topics covering various SMSF issues. He has personally trained more than 500 accountants, financial planners and lawyers to become specialist SMSF advisors. He has written four best selling SMSF books, presented to more than 40,000 SMSF trustees and professionals as well as having consulted to most major and boutique finance houses in Australia.
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