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rnr

Discussion in 'Introductions' started by rnr, 14th Jan, 2008.

  1. rnr

    rnr New Member

    Joined:
    14th Jan, 2008
    Posts:
    1
    Location:
    Perth WA
    Hi! I'm new at this so bear with me....my query is about SMSF trust deeds...does a person have to go thru an accountant or legal? is it a document that you fill out and return to the ATO. there doesn't seem to be anything other than - pay - I was hoping I could make a trust and have it witnessed legally. We are moving our super (allocated pension) out of a very expensive and not very productive fund so feel a bit burned
     
  2. AsxBroker

    AsxBroker Well-Known Member

    Joined:
    8th Sep, 2007
    Posts:
    1,448
    Location:
    Sydney, NSW
    Hi rnr,

    Sorry to hear the not so good news about your Allocated Pension, have you investigated other allocated pension providers? Also, it sounds like your asset allocation is not as growth oriented as you would like. Have you looked at the other investment options within your current AP?

    SMSFs are usually set up via accountants, each year a SMSF needs to be audited by a qualified accountant. For a SMSF the members will become the trustees, as opposed to your current service provider being a trustee. If you have the time, inclination and understanding to become a trustee of your own smsf, that's great as you'll take alot more control.

    Just out of interest, what are your current costs as a % of your balance?

    Cheers,

    Dan

    PS Before making an investment decision speak to a FPA registered Financial Planner.
     
  3. Nigel Ward

    Nigel Ward Team InvestEd

    Joined:
    10th Jun, 2005
    Posts:
    1,172
    Hi RNR and welcome aboard!

    Starting a SMSF is not an undertaking to begin lightly. There are very serious obligations imposed on you as trustee of your super fund (or directors of the company which is the trustee).

    It involves much more than just filling out some ATO forms. The fund trust deed is a legally binding document creating a trust. There are quite strict and sometimes complex rules governing what self managed funds can and can't do and invest in. Funds are audited annually and non-compliance can ultimately lead to loss of concessional tax status with grave consequences.

    You can buy your smsf deed on the net and probably pretty cheaply but there's a big lot of responsibility you're taking on.

    Cheers
    N
     
  4. tonyused

    tonyused Active Member

    Joined:
    9th Jan, 2008
    Posts:
    32
    Location:
    Perth, Western Australia
    My advice is to go to an accountant and get the superannuation Deed prepared professionally.

    This will at least ensure the trustee has the widest most flexable powers allowed under the tax laws AND the deed meets all the current requirements of the SIS Act & Regulations.

    Superannuation administration is complex by law. It's administration you cannot do on your own, eg the fund at least needs an Auditor each year.
     
  5. NickM

    NickM Co-founder Staff Member

    Joined:
    20th Jun, 2005
    Posts:
    321
    Location:
    Sydney