Self-Managed Superannuation Funds

Self-managed super funds allow individuals to take complete control of their superannuation and the savings for their future retirement. There are obvious benefits to managing your own superannuation, but the financial and organisational commitment can also be steep for the average individual.

Firstly, it is not recommended to manage your own super unless you have a substantial amount already saved. Otherwise, the fees and costs of doing it yourself will probably outweigh any benefits of managing your own super. Second, you must prepare the appropriate documentation to qualify for tax cuts and other superannuation benefits.

This involves registering a trust, electing to be a regulated fund and obtaining a tax file number and ABN. You then need to open a bank account and prepare an investment strategy, and a good financial advisor or qualified broker may be able to assist you with managing your own super.

Investing for superannuation is different than investing for gains now, and you must take on a different structure for risk and reward. Improper use of your superannuation fund comes with some harsh penalties, so talk to a professional and make sure you understand the risks and rewards of self-managed superannuation funds.