When thinking about starting up an SMSF, research is the key, and a lot of it. This is one of the most important decisions of a person’s life because it deals with their financial future and how they will manage to live after retirement. It’s also a very complicated process and takes total commitment and dedication to be able to properly manage this type of fund so finding a proper SMSF academy is needed. There are also legal responsibilities that must be taken in consideration as well. The person that is thinking of doing this type of fund should consider all the responsibilities that they will have to deal with and how much time it will consume in taking care of this type of fund. Also, in choosing this type of fund one must consider finding a licensed adviser and the fees that will be associated with operating it properly.
It will be to ones benefit to ask a lot of questions, do a lot of research and find the answers to all the questions. Do not settle for the first that comes around, there is always help out there but it will not find you, you have to go in search of it. Also, remember that with this type of fund, if someone makes a bad choice in managers to help with it, and that manager is ill willed and steals from the fund there is little to no recourse that the owner can have. So making wise decisions on who can have access to your SMSF is very important as well. This type of fund is regulated by the Australian Taxation Office and the fund can have up to four (4) members. This is the most important to be diligent on researching and being careful on. Because this is where your investments can be stolen or ill invested and not much can be done to recover it. While the owner and members of the fund have a wider range of investment opportunities open up for them, there is also a lot more risk involved right along with a lot more responsibilities and being more time consuming as well.
It would be well worth the time and effort to seek out the advice of a licensed professional SMSF adviser from SMSF academy is preferred. They can help give the pros and cons of what it takes to manage this type of fund and help you decide if it is right for you. There are different types of adviser accounts, some where the adviser can only see what is happening in the account but can’t operate the account, which is called viewed access. Then there is one where the adviser can make only withdrawals which is called withdrawal access, and finally there is complete access which is where the adviser has complete control just as the owner does. This is where caution much prevail and make a wise decision on who has access over the fund otherwise fraud and theft can possibly occur. When deciding what type of retirement fund is right for you it will be to your benefit to take your time do the footwork and research and do a lot of soul searching before deciding what is best for you and always get second third even fourth opinions on the matter.