Have you thought about taking control of your own super by setting up an SMSF? Or maybe you are interested in using your super for direct property investing or alternative assets such as crypto currencies and precious gemstones. But what is involved and where do you start?
Determining if an SMSF is viable for you and suits your needs and circumstances is the first place to start.
Obtaining a Statement of Advice is required by law to determine if an SMSF is right for you. To learn more about what a Statement of Advice is read our blog here but in short this is a document that your advisor prepares after gathering the necessary facts and objectives to confirm if an SMSF is suitable for you.
Generally speaking the costs of setting up a super fund are prohibitive if your balance is less than $200,000. This can be a combined total with other fund members such as your spouse or business partners.
It is also important to understand your roles and responsibilities of being a trustee should you proceed with an SMSF. Go to our resource centre to find out what these are.
The next step is to read your Statement of Advice thoroughly and consider all recommendations. Once you are satisfied it is the right decision you can sign the authority to proceed and commence the implementation of the advice.
You and your advisor can then set up the required entities (usually the SMSF and a corporate trustee). If you decide against a corporate trustee make sure you have an understanding of the future benefits you may be losing via our FAQ’s page.
If you are looking at using borrowing within the fund under an LRBA then you will also require a bare trust. Find out more about Limited recourse borrowing arrangements here.
So now you have your entities and you (or your advisor) have obtained the required TFN’s and ABN’s. You may now open up the fund’s bank account. Once this is active it can accept the rollovers from your current super funds. Remember to check the Statement of Advice carefully at this point as it may be recommended to leave a balance in your old fund for insurance or other purposes.
Now you are all set. You can commence purchasing the assets you wish (within the rules of course) and take control of your super. Remember to hold these assets in the name of the trustees as trustee for the super fund not in your individual name.
Here at Your Super Specialist we believe that everyone should have the opportunity to reach their financial goals and one of those ways can be through super. Get in touch with us here to find out more about SMSF’s.
This information has been prepared without taking into account your objectives, financial situation or needs. Because of this, you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation or needs.