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If you want to secure your future, you should consider starting a self-managed super fund (SMSF). Admittedly, it can be challenging to maintain, but when it’s done right, an SMSF would be a solid investment for when retirement comes.

A self-managed super fund is a type of trust that allows you to set up a fund to provide benefits for its members. Unlike other retirement funds, the members of the SMSF will also be the ones to comply with tax laws and other local regulations.

If you feel like setting up an SMSF seems complicated, here are some tips that can help you get a head start on preparing for your retirement and being in control of your financial future.


1. Seek Advice from Experts

Before you get an SMSF, it’s best to seek professional advice. After all, if you fail to set things up correctly, you might encounter issues in the future. So, to start your SMSF, make sure that you work with an accountant, a lawyer, and an auditor. 

You can also opt to appoint an SMSF administrator—someone who can handle record-keeping, financial accounts, and member statements for the fund’s returns. Of course, you can work on it on your own if you can navigate the ins and outs. But if you’re an expert in a different field, you don’t have to do it on your own.

2. Understand How It Is Run

When you open an SMSF, you can have up to four members to share it with. The members will be able to receive the benefits while the trustees handle fund management. Every member must be a trustee and must be over 18 to be a part of the fund. However, a member may also appoint a corporate trustee. 

With these things in mind, make sure you decide the structure of your fund. For this decision, you should consult your financial advisor or accountant.

3. Start with the Paperwork

Once you know what type of SMSF you want, you need to handle the paperwork. First, make sure you get a trust deed, which will set the rules for your SMSF. The papers must be drawn up by a qualified legal practitioner and signed by all of the trustees.

You should also elect your SMSF to regulate it within 60 days of set-up and get a Tax File Number, an Australian business number, and a GST registration.

4. Submit the Paperwork to the Bank

After the paperwork is ready, it’s time to open an account under the name of your SMSF. This account will accept contributions, rollovers of the benefits, and investment earnings. It will also pay the expenses of the fund. Keeping this account separate from other assets will help you keep all of your finances in check.

Final Thoughts

Now that you know how to set up a self-managed super fund, you can work towards being in charge of your future. Make sure to tread carefully; after all, it is a significant financial decision that will affect your life long after retirement.

If you need support handling a self-managed super fund in Sydney, you can work with us at Wealthy You. We are an Australian Mortgage Company that has been providing solutions for our clients’ particular financial needs. Book an appointment with us so we can make the process simpler for you.