There’s nothing like a tip from a person that you respect with plenty of experience, especially when you are relatively new in the game. In this article we pass on some very valuable tips to you regarding your superannuation, and in particular, a Self-Managed Super Fund.
Keep in mind that these Self-Managed Super Fund tips are generic. This is general information, and as such your own personal circumstances and objectives may call for something different. You should seek personal advice from a financial advisor. However, these tips should get the wheels turning for you and give you some powerful things to talk about.
• You should have something on the order of $300,000 in super to get a SMSF started. That will minimise the impact of the ongoing costs.
• You can get a trust deed for your Self-Managed Super Fund online. Click here.
• Avoid starting a SMSF just to get into someone’s special scheme or one particular investment. Many have lost the bulk of their super that way. Diversification gives you a degree of protection, and plenty of good investments are available.
• For SMSFs with multiple members, you might want to keep separate investments for each one. This enables each one to be responsible for their own investment decisions and avoids the blame game. It also enables altering assets to suit the needs of each person and allows a pension to have its own set of assets when the time comes. Discuss with your accountant the best way to manage this.
• Write “SMSF” on the cash account cheque book cover in big, bold, black letters. You don’t want to mistakenly write a cheque from your Self-Managed Super Fund cash account and pay for personal expenses with it. That would be a breach and could make your SMSF non-complying.
• Have at least one managed fund in each member’s account within the SMSF. This gives you a quick and easy way to invest funds when you are busy and you don’t have time to research individual shares.
• Keep a generous amount of cash available. You will need it for ongoing expenses and tax payments (during the accumulation phase), but you also want to have the ability to move into a good investment opportunity when it presents itself.
• Review your SMSF investment strategy every year. Markets and your circumstances are ever changing. Your strategy is intended to be practical and dynamic.