Self-managed super funds allow for up to four members who must all be trustees, and the fund’s sole purpose must be to providing for the retirement of members. This may include accessing a lump sum, an income stream, or death benefits.
If you choose to set up SMSF superannuation in Australia, you are responsible for all decisions relating to the fund, and are expected to be compliant with the laws governing super funds.
If you run a self-managed super fund you will need to:
- Set and follow an appropriate investment strategy for your risk tolerance and retirement needs
- Have the financial experience and skills required to make sound investment decisions
- Have enough time to research investments and manage the fund
- Budget for ongoing expenses such as professional accounting, tax, audit, legal and financial advice
- Keep comprehensive records and arrange an annual audit by an approved SMSF auditor
- Organise insurance, including income protection and total and permanent disability cover for super fund members