SMSF Investment StrategiesSharing Simple Strategies for Self Managed Super Funds
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Thinking of starting a SMSF?
a) Compliance considerations
Superannuation in Australia is governed by specific regulation called the Superannuation Industry Supervision Act (SIS Act) and there are a number of restrictions that apply. Failure to comply with these restrictions can make your fund non-compliant and this can have serious financial consequences. SMSFs are regulated by the Australian Tax Office and there is some pretty good info on the ATO website (link to Thinking of a Self Managed Super Fund) about considerations in starting a SMSF which focuses mainly on compliance issues. Read this and make sure your planned investment strategy for your SMSF is compliant. If in doubt, check with your accountant first before you set up your SMSF.
b) Financial considerations and Setup costs
If you decide you want to start your own SMSF, you will need to prepare the relevant documentation such as a SMSF trust deed, apply for ABN and TFN for your SMSF. We did our set up through our accountant who got SMSFworks to do our trust deed and we paid around AUD 1,000 for their services but today there are many companies who can do it for much less.
c) Investment Strategy
The ATO requires each SMSF to have a documented Investment Strategy. Some accountants will charge you a few hundred dollars to help you prepare one. We are happy to share our investment strategy with you which you can use as a template to come up with your own. You can find it in Part 2 of our free e-book SMSF Investment Masterplan.
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