Having self-managed super funds in Perth (SMSF) lets you save up for retirement in Australia. This is a long-term savings arrangement where members contribute to the fund for a specific period. As the trustee, you invest the contributions to get additional assets, which you will use to provide benefits when members retire.
An SMSF in Perth isn’t for everybody, however. Here is some information about starting a self-managed super fund.
Setting Up a Self-Managed Super Fund
An SMSF can have one to four members. You and the other members are trustees of the fund. To get the fund going, you need to create an investment strategy to meet the retirement needs of your members. You need to follow the guidelines set by Australian Taxation Office (ATO) when managing the fund.
Depending on your fund’s governing rules, an SMSF generally accept employer contributions, super co-contributions and salary sacrifice contributions. Most SMSFs also accept personal contributions and eligible spouse contributions. Remember that a member can’t generally contribute an asset to the fund.
Accessing the Fund
Members can only receive benefits from the fund when they reached their “preservation ages.” Certain situations, such as death and terminal illness, may allow members and their families to access the fund prior their preservation age.
Deciding to set up a self-managed super fund is a major financial decision. Think about consulting experts on investments skills and knowledge you need to manage an SMSF successfully.