Having enough money by the time you retire is a goal that most of us, it not all of us have. It can be quite difficult to figure out when we have enough or if the money we have is still not enough for our retirement. Having a superannuation fund is a solution to this problem. It helps you to have funds you can invest on so that it grows and by the time you retire, you will have enough. The money you put into this fund are meant to provide you with the money you need when you are in your retirement years already and shouldn’t be used otherwise. If the funds are used other than for retirement funds criminal and civil charges can be filed against you.
When you set-up a self managed super fund or a SMSF, it just means that you want to have more control over your funding but this isn’t true for everyone. Some SMSF members rely on one trustee who has more experience and skills to run the funds. This is because they don’t want to do much with the responsibilities but they just want to make sure that their funds are safe. This is also the reason why some of them appoint a trustee to help them run the SMSF. In this way, they save on cost as compared to having a corporate trustee. Although this is an option, it may not also be the best. It can still be costly so you still have to research to find out what other options you have.
An SMSF can be of 4 or less members and is regulated under the Australian Taxation Office. One can get to know more about it by asking for professional advice. It is however important that you know all the rules and regulations that come with this kind of fund. There are requirements that have to be met and this depends on the trustees. It can either be an individual trustee or a corporate trustee.
When an SMSF is established and there is more than 1 member, it is usual for one of the members to stand up and be in control of the fund. This is because that person knows how to handle everything about the SMSF and has a background of it. In unfortunate events when that trustee or member dies or is unable to manage the funds, the control of the funds will remain with the other members. The problem arises when no other member wants to step-up and takes control over it. This may be due to lack of skills or experience or any other reason. A perfect solution for this scenario is to appoint a corporate trustee for the fund. This person is responsible for all the legalities and paper works but you still get to decide what to invest on and what to do with your funds. It is best that you find the right person for the job so that you can still have the SMSF running without doing so much work.