How to set up SMSF

We have about $200000 in our super. We contribute about $15000 per year and at the end of the year after all the charges and losses the super fund makes in investments in past 2 years our $15000 ends up only $13000.
So decided to do some home work to invest our money wisely. We have a couple of investment properties and one of them is through DHA. We would like to buy another property from DHA using our super. What is the best way to use super funds towards this or a better use of our Super fund? Appreciate your time and valuable advice. Thanks

 

Hi Muhanda1

Starting your own SMSF is a popular way to try to improve on the performance of your super fund. Before you do this you need to check that your existing fund will transfer your account to your SMSF (some funds do not allow this until you cease the employment which contributes to the fund).

If you run your own SMSF you will be ultimately responsible for making the investment decisions, however there is plenty of advice available to you if you need it. You will also be ultimately responsible to ensure that the books are kept properly, that annual accounts are prepared and audited and that the annual tax return is sent to the ATO in time. But again, if you don't want to do this yourself you can pay for professionals to do this.

There are three options to set up your SMSF and which you choose will depend on how hands-on you wish to be.
option 1
This would be where you engage an accountant or solicitor to set up your fund for you. You give them the details and they produce documents for you to sign and tell you where to sign them and what they mean. After a while you receive the documents back and your fund is set up.
option 2
This is the same as option 1 but using online providers. You fill in some forms online and you get the documents to sign by download or through the post. You may find the provider also offers to produce your fund's accounts at the end of the year.
option 3
This is where you purchase an establishment pack and fill in the forms yourself, following instructions and advice in the pack.

Starting an SMSF is not like buying a house, but there is a definite sequence which needs to be followed and you do need help with this. Each of the options above will do this for you.

 

Thanks very much for the descriptive reply.

 

Hi muhanda1

I am happy to discuss if a SMSF is right for you, if you are interested.

For information on SMSFs check my website, which includes case studies:
Self Managed Super Funds Specialist

Kind Regards