Usually when you invest in an investment fund, someone else will make the decisions that will affect the rest of your financial life. Although these investors that you put your trust in, may be good but do they have your best interests at heart or will they swop investments just because they get paid per swop they make or will they perhaps use your small investment to increase the price of another, larger one that they manage. Of course this may not always be the case but if you are not happy about the situation, you can always consider opening up your own investment account and by doing that, you can make your own investment decisions and have to leave your future financial wellbeing in the hands of someone you may hardly know. Investment laws, rules, regulations and whatever else all allow you to open a self-managed superannuation fund and by doing so, you will be making the decisions on where your investments go, plus of course, you don’t have to pay if you decide to change an investment. There are of course, perhaps understandably, sets of rules and regulations that you must abide by when making these investments and although there may be some limitations on as to what you can invest in, you still have a wide diversity of investment options to choose from. The rules allow that a super fund, like the one you would own, is allowed to invest in bank deposits, equities and even property, both residential and commercial. The rules even extend to allowing you, or the fund, to apply for property loans on either residential or commercial properties.
A self-managed superannuation fund can also be a family affair as, up to four people are allowed to be members of the fund and so, if there are up to four members of your family that wish to invest, they can all join the same fund and save the additional cost of opening one each. In these instances though, there can only be one trustee and so therefore, agreement would have to be made on as to who that trustee should be.
With any fund or other form of investment, there are of course rules and regulations that have to be abided by, plus as a fund it will be subject to audit and also of course, any government or state revenue collectors will also be interested in the fund. For these reasons, if you want to open a self –managed super fund, it is probably best to first contact someone like smsfselfmanagedsuperfund.com who can assist you, for a small fee, in opening a self-managed super fund and also advise you as to the limitations that may be put on it when it comes to investments. These same people, again for a small charge, can also assist with auditors and revenue collectors when the time comes. The set up charge will be a reasonable one off set fee but for auditing and tax services, an annual fee will be required.