Self Managed Super Fund (SMSF)

What is a Self Managed Super Fund (SMSF)?

SMSFs offer flexibility, transparency and investment control not available with retail funds.

A Self Managed Superannuation Fund is a private superannuation fund; the members are also the trustees of the fund. The trustees are responsible for running the fund.

The trustees responsibilities include:

  • researching investments
  • setting and following an investment strategy
  • accounting, keeping records, and
  • arranging an audit each year by an approved SMSF auditor

The SMSF receives contributions on behalf of its members. It invests these contributions with the purpose of giving benefits to the members when they retire. The contributions must be invested in line with the Trust’s Investment Strategy.

Investment Strategy

The SMSF Investment Strategy should:

  • be in writing
  • outline the investment objectives and retirement goals of the SMSF.
  • outline how the investments have been selected
  • comply with legislated restrictions
  • pass the sole purpose test

Sole Purpose Test

All investments must be made in the best interests of fund members and within the boundaries of the law. The fund’s investments must be separate from all personal and business affairs of fund members.

The sole purpose of a Self Managed Super Fund is to provide retirement benefits to the members, or their dependents if a member dies before retirement. This means the SMSF will fail the sole purpose test if it gives a pre-retirement benefit  – for example, personal use of a fund asset – to  members of the trust, or to anyone in their family.

Developing an Investment Strategy for your SMSF

FinAdvice Financial Planning has years of experience, education, experience and training in investing.

We can help you prepare an investment strategy and advise you about different types of investment and insurance products in which your SMSF may invest.

Please contact us to discuss how we can help you.

Suggested links

Money Smart
Australian Taxation Office

Understandable financial advice from FinAdvice Financial Planning