Who Are Suitable for SMSFs?
Friday, June 5th, 2009 People who are apt for SMSFs are called Trustees. Trustees of an Self-Managed Super Funds or SMSF are obliged to organize and execute an investment strategy for the superannuation fund. The approach must replicate the principle and conditions of the fund and take into account:
- How to make the most of member returns while considering the risks;
- A long-standing savings strategy; and
- The capacity of the fund to pay benefits of the trustees as they reach retirement, and other costs covered by the superannuation fund
As a general rule, a DIY super fund may be appropriate:
- For younger people whose asset balance will most likely reach more than $100,000 within 12 months of the fund being set up
- For people at least seven years away from retiring with an expected balance of more than $200,000 within 12 months of the fund being set up
- For people at least three years away from retiring, with an expected balance of more than $300,000 within 12 months of the fund being set up depending on their individual circumstances, goals and needs.
Do keep in mind that trustees must make certain all assets are made in agreement with the strategy investment documented and should seek investment advice from a qualified professional or financial consultancy company like ShareFinder if in any doubt.
