A self managed super fund, or SMSF, is a private superannuation fund that is still regulated by the Australian Taxation Office (ATO), but self managed and normally with a financial planners advice.

Although the set up and ongoing costs of an SMSF can be expensive, they provide you the freedom to invest in whatever investments you choose. An SMSF can have up to four members, where all members must be trustees, and are responsible for decisions made about the fund and legal compliance.

To operate a SMSF there are a number of guidelines you need to follow. These include devising and following an appropriate investment strategy, having the appropriate knowledge and experience to make sound investment decisions, keeping comprehensive records and arranging an annual audit by an auditor. You must comply with all legal requirements and only use funds to provide retirement benefits.

Public offer super funds use managed funds and these are available for SMSF’s which still allow different asset classes to be utilised with professional managers, while providing more flexibility in your investment choices.

You can select investments that you have more in depth knowledge about and are able to take more calculated risks in your investment with the list of investment options potentially endless including property, shares and collectables. Like most investments risk can provide great rewards, but it can also result in losses, so it is vital to constantly monitor your investments and seek financial advice when considering any new investments.

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Peter Roan from Roan Financial Group said it’s vital that you know where you are at any point in time, and what is most important for you to action to ensure your fund remains compliant. “You have access to intuitive information and online facilities that provide you a ‘real-time’ overview of your fund’s position but a financial adviser will deliver timely and intuitive information so you can make better decisions about your fund,” he said.

Peter also explained that there are a number of items you should look at when managing your super fund including access to cloud based technology and daily balance and reconciliations, monthly fees, tracking of any contribution caps or limits, and producing live statements and reports. 

“Roan Financial Group assists trustees with all the requirements and responsibilities of managing their SMSF to help make life easier, and offer a range of services to help you see your financial future more clearly,” he said.