SMSF TV - How to setup a Self Managed Super Fund
Hi, I'm Grant Abbott and I'm chairman of the Australian SMSF Members Association or ASMA for short. I want to talk to you today about how to establish a self-managed super fund. We're now almost approaching 500,000 self-managed super funds in Australia and many more people are asking us on our website, how do we go about setting up one of these funds? Let me give you the simple details.
The first one and foremost, we need to work out who is going to be the Trustee of our self-managed super fund. All members must be Trustees and we can either act as individual Trustees, or alternatively we can have a company and all the directors will then be members of the superannuation fund. So either have individuals or a company trustee, we establish that first.
The second stage is we need to then get a trust deed or a set of rules, and it's important to understand that with a self-managed super fund or the laws that relate to superannuation, they effectively tell you what you can't do. The trust deed is the real set of rules that actually tells you what you can do. You need to make sure you get the best trust deed in the market. Certainly don't scrimp and save and cut back strategies simply to save a few dollars up front.
Once we have that all established we then need to get an ABN, we then need to get a tax file number, and then virtually we're in business. The next thing is to then establish a cash account, whether it's a Macquarie CMT, an ANZ V2 account, a Westpac account or NAB account to actually operate all transactions through there.
Following that, what we need to do is then start to get some money in and that could be employer contributions, SGC, it could be salary sacrifice contributions or it could be rollover from other funds such as industry funds or retail superannuation funds or even another self-managed super fund. Once we then go ahead and we effectively put our money into the fund, it's time to sit down and invest, so what we do is we build an investment strategy. That investment strategy says, well this is where we are taking our self-managed super fund, and from there we monitor our investments, we look at all the strategies that are possible, we keep ourselves educated and then we're off building this wonderful self-managed super fund, that if we've done it right, spent that time up front -- look and get a good advisor if that's absolutely necessary -- if we do it up front and get it right, it's going to last us the test of time, at least 40, 50, 60 years, possibly if you do it well, it's going to last 100 years. Anyway, it's Grant Abbott discussing how to set up a self-managed super fund. I'm signing off.
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