For SMSFs, it is significant that all their transactions go through the bank account of the fund. There must be an investment strategy in place and it should be compliant with the ATO guidelines. With this is mind, any such strategy is to be declared beforehand.
Tag: managing A Super Fund Archives
The process of SMSF administration is fraught with traps, but at the very same time, they can also be greatly rewarding. If there is a need, it is to be mindful about the perils and rewards. When naming an SMSF, remember less is more. Rather than using terms like ‘executive’ and ‘family’, go for something pretty simple. Nothing quite like “Rayne Smith Super” should work best.
In the world of Self-managed Super fund, a cross-insurance policy is one wherein an SMSF trustee takes out a policy over a member’s life with the clause to deduct premium from the account of another member. In being so, the cross-insurance policy benefits the member who has paid for the insurance in case of an insurance event arising.
Not all the Super funds can be star performers, and those which can be may fail to do so consistently. Take the case of IOOF Portfolio Service. It gave a 13.8% return in the year 2013, whereas it fared miserably in 2012 giving only -1.3%. So where does this leave us? How should we go about choosing Super fund then? There is no dearth of funds which have trailed lower than inflation and for a good period of time at that.
Are you thinking about setting up your own Superannuation fund? To update you with the statistic here, you are not alone. The run of SMSF has been nothing short of incredible, and it has gathered 1 million members in a very short time. Over the last 4 years, the industry has shown 26% growth and has a whopping $560 billion in assets. So when you say you want to set up a SMSF for yourself, you are not talking balderdash for sure.
SMSF vests a lot of power in the hands of its trustees, inasmuch as the trustees feel they have a lot of control over the investments they make and flexibility in terms of choosing which one they want to go for. Obviously, not all this comes that easy. Trustees need to stand on the right side of compliance and observe various SPAA and ATO restrictions.