Swift Methods In Manage My Own Super Simplified |
Posted: November 29, 2014 |
When it comes to money matters and more so, planning for one’s retirement, the question on most Australians’ minds is “should I manage my own Super”? There has been a sharp increase in the number of Self-Managed Super Funds (SMSFs). It is notable that more and more people are opting to manage their own retirement funds. Manage your own super There are certain aspects that will ensure effectiveness in managing your own Super. One very important thing is to follow the rules that appertain to managing my own Super. The minimum financial requirement is a $200,000. Your fund should have that amount or more, as there will be starting up costs which include legal fees as well the deposit fund. Will require the participation of at least four (4) persons. The four of you will be the trustees. You need to establish a trust deed and regulations in order to efficiently manage your Super. As trustees, you will be responsible for managing the funds, mainly making decisions about investments. You will be held legally responsible for the activities or running of your Super. Investing and growing your Super is a core business. Decisions about what portfolios to trade in or what properties to invest in should be well thought out. It is advisable to seek the services of a professional financial analyst or someone in the field of investment so as to make informed decisions about growing your retirement fund. Daily observation of market trends is important. You will need to know what is worth buying and for what period of time. Spreading your investment across the various investment options like stocks, bonds or even treasury bills will need careful decision making. You do not want to diminish the value of your Super; you want to make investments that are sound and profitable. It imperative to make a habit of studying the money markets. By reading the newspapers’ financial sections, you will get a grip of how the world markets are moving. You will know which stocks are moving up or gaining profit before committing part of your Super funds. How to keep healthy financial report Keeping financial records is vital. There are statutory requirements as well as rules and regulations that apply to managing your own Super. It is important to strictly adhere to the legislated tax regime, to prepare annual tax returns and practice good financial reporting practices. There is a requirement to audit the funds of your Super and reporting the same accurately to the governing bodies. You will need to be keeping proper recordings and recording minutes of all meetings, be they annual general meetings, or any other official meetings held by the trustees. Payment of benefits to any member should only be done when the particular member reaches the official age of retirement, known as preservation age. The preservation age will have been stipulated in the rules and regulations of your Super. Releasing of funds earlier will lead to penalties and fines. Borrowing or taking money from the Super is strictly forbidden, you should never at any one time combine personal finances with those of the Super fund. Manage my own Super or not? It is not a venture for everyone. Though desirable, not all people are able to run SMSFs efficiently. One needs to have the skills to do so or do wide consultations in order to arrive at the right decision. There is a need to look for the services of a financial consultant, or to get advice from a professional who has the experience and necessary skills needed to run and efficiently manage a Super. It is important to take into account that breach of legal or statutory requirements will result in heavy penalties and fines. These could ruin your retirement plans as they will adversely affect your Super. Keeping the rules ensures that you are eligible for tax concessions. This goes a long way in ensuring that your retirement plan is stable and growing. Managing my own Super means that my retirement plan is in my own hands. The trustees and I are fully responsible for making sound financial decisions in order to reap maximum benefits for my Super. The advantages of managing my own Super range from freedom to decide about investment to flexibility when it comes to decision making. My retirement fund will no longer be in the hands of huge financial institutions, many of which nearly collapse following the not too distant global economic crisis.
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