How much work would it be to manage your own SMSF? I mean I know they are good for passing your super in the trust deed but do you need any qualifications to manage them properly and effectively?
http://www.ato.gov.au/superfunds/pathway.aspx?sid=42&pc=001/149/030&mfp=001/149&mnu=49150#001_149_030
According to the ato- "Setting up an SMSF is a major financial decision and you need to have the time and skills to do it. There may be other, better options for your superannuation savings."
There are significant penalties for breaking the rules, so a knowledge of the major rules would be beneficial.
Time committments would depend on how many different investments you have in the fund, how many transactiosn you are performing and the work involved. If you areinvesting in Australian blue chip shares, and not buying and selling reguilarly, it doesn't take much time at all.
You would need about $150,000 in superanuation to make it worthwhile. Under this amount, the fees for preparing the accounts and having the fund audited would by more than the fees you would pay in a normal super fund.
It depends on how much you outsource basically. You could (and I think many people do), setup the SMSF then get someone else to administer and make investment decisions on your behalf. I've chose the middle ground for mine, our accountancy firm has a superannuation division, they handle the administration and auditing, but I make the investments. On the simplest side, this just means I forward on any purchase/sale contracts etc, and the monthly statements from our property manager, however obviously if you want to make good returns with your super funds, you need to study a lot to make sound investment decisions. That becomes a bit of a 'how long is a piece of string' time frame.
its not worth managing your own…how bjsaust has his set up is the ideal way. You should pay about $2500 – $3000 to have one set up, if you are buying property through this you can find some developers who will split that fee with you to buy off the plan. Then you should pay about $1600 – $2000 per year for accounting for it.
If you do it yourself and stuff up your fund becomes non compliant and its just not worth going there.
Its not the type of thing that is even worth going alone, just like property investing. Why do it when for a reasonable fee someone can do it for you and you can focus on what makes you more money.
The person you can employ to manage your SMSF would be the accountant? or someone else?
Ishtvan051 wrote:The person you can employ to manage your SMSF would be the accountant? or someone else?
A trustee must manage the trust they are trustee of. They cannot delegate this role to others however, they can seek advice from professionals.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks again Terry
There's a difference between administering, and managing.
The common law rule is that a trustee cannot delegate their powers. But I think it is possible to a certain extent at least with the law modified by the Trustee acts in each State.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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