Managing your own superannuation fund can be a difficult and sometimes daunting task. You have complete control regarding the fund, but at what price. All issues and decisions are at your door and there are a myriad of rules and regulations to be aware of. There is legislation there that needs to be adhered to and they change frequently, so you need to be on the ball. While control of your own fund allows you to put your money into many different assets, you might not have the required cash to diversify.
The Magic Number.
Many Australians set up their own self-managed superannuation funds, but for the wrong kinds of reasons. They believe that the amount of money that they have to invest is enough when in fact it isn’t. Some financial planners believe that the magic number is two hundred and fifty thousand dollars and not two hundred thousand as was previously thought. People forget the overheads involved in setting up such a fund like the initial set up costs, managing the account and the dreaded tax reporting. If you self manage your own superannuation fund, then you cannot bring a complaint or issue before the Superannuation Complaints Tribunal. You have to instead, head to the courts, which is more expense and time lost.
The Wrong Advice.
That is why you need to find a competent firm who can deal with these issues for you in a professional way. You need to first look for a firm that are accredited with the SPAA (Self Managed Superannuation Funds professional Association of Australia) thus guaranteeing you a firm who know exactly what they are doing and are authorised to do so. There are many people out there who have been given the wrong advice and been told to invest in property for example, but have had to borrow in order to buy. This is not sound advice and you should talk to a qualified financial planner before you go down this road.
The Simple Rule.
There is a really straightforward rule given by qualified financial planners and that is if you are using or enjoying an asset long before you have stopped working due to retirement then it is most probably not in line with the law. Understanding these simple rules is necessary if you are to avoid the pitfalls that are in front of you when managing your own fund. You wouldn’t just let anybody work on your car engine, so why on earth would you not avail yourself of a qualified SPAA approved financial planner to take care of not only your future but that of your family as well. It makes sound financial advice.
These firms offer their specialist knowledge so they can supply you with the support you need. It may come in the form of written advice or telephone support, but they are there to provide the best possible solutions to your superannuation fund. They know you want to invest, but they also know that you are busy and they understand that you may have different needs. Getting financial advice should be straightforward and less complicated, so you don’t have to be stressed. There is no substitute for experience, especially when we are talking about your future. Go get yourself some sound financial advice today.