Thinking about setting up a self managed super fund? Of course these funds have really taken off within the last few years and it’s not hard to see why. These super funds are available to most people and even if you aren’t looking to invest millions, you still have to be very careful with them. So, what are the things you need to know before setting up a self managed super fund? Read on and find out a few facts that must be taken into account when it comes to setting up a super fund.
There Will Be Fees
Just because you are setting up a SMSF, there will still be fees associated with these funds. Now, a lot of people don’t realize that but nine times out of ten there are fees with the funds. If you’re getting a company or trustee to run your funds then it could be quite a few thousand per year in fees alone. That’s a lot of money especially if you aren’t planning to invest big. What is more, there can be a host of additional fees with accounting and even some auditing. So many people don’t actually think about these things and end up with a nasty shock later.
Understand What A SMSF Is
To be honest, people love the idea of investing and putting money into a super fund and yet they don’t actually know what these are. That might sound very strange but it’s true; there are so many who really don’t know what these funds are or how to use them to their advantage. It’s a real problem to say the least and it’s something which far too many are running into on a daily basis. That is why you have to have a basis knowledge of a self managed super fund. You would think that’s a given and yet a lot of people don’t have this basic knowledge.
Learn What Your Responsibilities Are
What are your responsibilities when it comes to a SMSF? Not sure? Well, if you don’t know what your responsibilities are it’s time to learn more about such things. That’s something most people don’t think about learning about and it’s problematic to say the least. Knowing your responsibilities will be crucial and even if you are a trustee, you need to know what to do. There are responsibilities to take care of when it comes to investments. If you want to find out more, check out smsfselfmanagedsuperfund.com.au.
Be Sure Before You Set Up A SMSF
Setting up a self managed superannuation fund can truly be great but only when you know what you’re doing. There are far too many people who end up with these funds and end up making terrible mistakes when it comes to making a decision. It’s not ideal to say the least and in all honesty it’s a nightmare because you could end up losing money. However, when you know a few simple things you can hopefully run a self managed super fund with ease.