123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Investing---Finance >> View Article

Why Financial Advisors Assist In Financial Planning Of Smsf

By Author: Ross Caruso
Total Articles: 1

A Self-managed super fund or SMSF is one that is structured as a superannuation trust for its member or members once they have retired and stopped working. The significant difference between these funds and other super finds is that the members themselves are the trustees.

As a result of this structure, the members or trustees run this fund for their benefit, can decide on investments and are responsible for seeing that the fund complies with all laws that govern SMSFs. This can prove quite tricky to non-specialists, and that is why it is best that they take the services of an experienced and knowledgeable financial advisor who can guide them through the process of setting up the fund and managing its administration. This advisor can also come up with investment strategies and insurance products that can apply to the funds in the SMSF. These funds also need to be regularly audited by approved auditors. Annual returns of the find have to be filed, and the necessary taxes paid.

Every member of the fund has to be a trustee, and every trustee has to be a member. The members cannot be employees of other members unless they are related. In the case of single-member funds, only one trustee will be a member, while the other trustee fulfills the need for the minimum of two trustees in a fund. Trustees cannot be paid for their services. It is essential that all assets in the fund have to be in the name of the fund, and care has to be taken to see that they are not combined with any personal assets. Financial accounts must be regularly prepared and submitted, and any breach of laws can result in the trustees having to pay fines individually. If there are any changes in trustees, due to death or other reasons, the fund cannot operate without a proper succession plan.

Trustees to an SMSF have to be eligible to become trustees and have to give consent in writing and declarations stating that they understand their responsibilities and duties. Persons who have been convicted of any offence that involves dishonesty cannot become trustees or if they have been disqualified for any other reason. An SMSF must have sufficient funds to cover the costs that are required to administer it, and still provide substantial benefits to its members. It is also possible to buy property through an SMSF if you follow the rules laid down in this regard.

More About the Author

Providing Financial Advice To Make Australia a Weathier Place. Find more information at Wealth & Retirement Solutions Brisbane

Total Views: 24Word Count: 410See All articles From Author

Investing / Finance Articles

1. Things You Should Know About Cash Out Refinance
Author: Refinance Mortgage Guru

2. Quest Ira Services -managing Finances & Planning Your Future
Author: Hayley Barnes

3. If You Want To Buy Home Against Mortgage Then Look For The Best Company
Author: Anu Walia

4. Get Hassle-free Loan Approval With The Support Of Mortgage Lenders.
Author: Jacob Smith

5. What Are The Advantages Of Bank Loans.
Author: Sarah Addyson

6. The Benefits Of Savings Accounts And Bank Loans.
Author: Sarah Addyson

7. Save Your Pocket By Filing Taxes On Time!
Author: Boston financial

8. Opting For A Credit Union Auto Buying Service Winston Salem Nc
Author: Sarah Addyson

9. Should You Stick With Banks In North Carolina?
Author: Sarah Addyson

10. Liquid Funds For Short-term Investment, Low Risk And Higher Returns
Author: Shashank Pawar

11. What Are Some Unsecured Business Loans To Succeed In The Business Sector?
Author: Kalpit Kumar

12. Some Easy Ways To Obtain Startup Loan For New Business
Author: Kalpit Kumar

13. What Are Some Of The Benefits Of Loan Against Property?
Author: Kalpit Kumar

14. Pointers To Consider When Applying For Small Business Startup Loans
Author: Kalpit Kumar

15. Why Every Trading Participants Need Be Familiar With Regulatory Reporting!
Author: Priya Raj

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: