Are you ready to get started on your retirement? There are bound to be plenty of options available to you, no matter where in the country you are. These funds are actually the best way for you to start saving up. There are a number of advisers who will tell you the same thing. The difference is that they will probably charge you a fee for the advice. Without further ado, here are some basics of the SMSF or the self-managed super fund.

What is it?

An SMSF is a type of account that can be opened by just about anyone in the country. It is an account or a “trust structure” that can be used to manage your retirement savings for you. This means that you won’t even have to do any of the work when it comes to ensuring that your retirement is secure. Instead, all you need to do is start using an SMSF and let the account do all the work for you. This is a sure way to know that your retirement is in good hands. For example, you could open one of the number of self managed super funds Brisbane and other parts of Queensland have to offer.They were created to make sure that retirees could enjoy a range of financial benefits. In fact, these funds are so super that they provide benefits to certain beneficiaries if you were to pass away suddenly. What more could you ask for?

How it works

A typical SMSF can have up to 4 members in it as beneficiaries. Unlike a normal retirement account, the SMSF is a trust fund. This means that just like for other trust funds (think Gossip Girl) you are going to need to appoint a trustee.

This is someone who will manage the account for you until you meet the requirements that will make you the sole owner of the account and everything in it. There are two options when it comes to selecting a trustee:

Corporate trustee

This is a method in which you appoint a company to be the trustee for the SMSF. Each member of the fund is then a director of the corporate trustee. This isn’t the cheapest of structures though. There is going to be a significantly high cost to set up something with this level of complexity and magnitude. However, you do get to enjoy a whole range of benefits that you wouldn’t be able to if you were working with an individual trustee structure.

Individual trustee

This is definitely the cheaper of the two options. This makes it a lot more popular for the common people who don’t want to end up paying way too much for a corporate trustee structure. In this scenario, each member of the trust fund is appointed as a trustee themselves. There need to be at least 2 trustees in this setup.

The function of an SMSF

After you are done setting up your SMSF, you will need to set up a bank account from which to conduct the transactions related to the account. If there are multiple members in the fund, you can set up one bank account for everyone, so that the fund will receive contributions in the form of donations, deposits and rollovers. When the time comes to make use of the SMSF, the bank account can be used by the trustees to make investments and pay allowances when necessary.

Get some help

When it comes to managing an SMSF, you need to understand that they aren’t as simple to run as a normal fund. You need to have mastered some basics if you hope to get your SMSF in the best shape ever. These include:

Super Awesome Self-Managed Super Funds

Trust deed

This is a document that lays down all the rules and requirements of the SMSF. Without this, there won’t be any order at all.

Strategy for investment

Written plan for how you are going to invest the assets in your SMSF. You will need to stick to these rules if you want to see any success.

Binding Death Nomination

This is a statement of who you would like to receive all the benefits of the SMSF in case of your death. Don’t worry, you aren’t going to die. This is just in case. It never hurts to be prepared.