5 simple steps in setting up your self-managed super fund - Finness Advisory

5 simple steps in setting up your self-managed super fund

Welcome to our final blog in our SMSF series! In part one we discussed the main things you need to know if you’re thinking about having an SMSF.

In part two, we outlined the top 7 mistakes we see in running an SMSF, and how to avoid them.

We close out the series by briefly outlining how you can go about setting up an SMSF.

BUT WAIT, an SMSF is not for everybody. I implore you to seek advice before you head down the path of setting up an SMSF.

With $3trillion in superannuation, it’s certainly not a lazy pot of money anymore. Here’s what that looks like as a number $3,000,000,000,000. That’s a lot of zeros!

$800million or so of that is invested via SMSFs and it’s certainly an area of interest for a lot of wealthy investors because of the control, flexibility and transparency SMSFs provide.

And it’s very easy to set up an SMSF, if this is of interest to you (and hopefully you have reached out to a licensed financial planner to assess if this is appropriate for your circumstances).

These are five simple steps you need to follow to set up your fund but just drop me a line if this is of interest and I can do it all for you.

Here’s the five simple steps;

  1. Set up your fund with up to four members
  2. Sign your trust deed
  3. Sign your Trustee declaration
  4. Apply for an ABN
  5. Roll over your existing funds and start making contributions

In addition to the above, you also need a written investment strategy so the trustees and members have clarity around what you’ll invest into. You need to take into account things like diversity, risk, time frames, paying pensions and liquidity.

You’ll also need to give some consideration to life insurance.

Importantly, the sole purpose of your fund is for the retirement planning needs of members so you can’t dip into your super for personal reasons or allow members personal benefits before they reach a condition of release.

Your trust deed is like a rule book so it will help guide you on how to run the fund.

If you’re thinking about setting up a SMSF and need some help, simply provide a few details below and we can work out if you need an Accountant or financial adviser to step you through the ways to reduce your tax and boost your super! We’d love the opportunity to help you or just answer some questions for you.

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