Self Managed Super Fund

How & Why To Start A Savings Account

Savings accounts are incredibly important, especially if you think of them as a means to get further in your life and even as an emergency fund. At some point in most people’s lives, something happens that we can not control. When you’re living paycheck to paycheck and something like this happens, especially if it happens to be something that entails incredible amounts of money, you’ll need to have something to back that up. It’s a good idea to make sure that you have an emergency fund for such a case, but you should also have a savings account. Some people put these two together, but in most cases, it’s a good idea to keep them as two different savings accounts so that one can be for savings for your future and the other can be for emergencies.

If you look at money, rather than as a means of small instantaneous pleasures but more as a way to get you through your life and to make things easier for those that you love, you’re more likely to get your life off on the right track. Though this may be easy to think and to say, it’s much more difficult to put into practice. It takes a lot of motivation, skill, and determination to make sure that you save money for your future. This is because the modern world constantly inundates people with advertisements and media that project the idea that we must have more. However, this isn’t the case, and more than likely, you’ll find that less things will actually make you happier.

After you know that you want to save money and that you’re willing to part with frivolous expenses, it’s time to open an account. You can do what you believe is best for you, but many times, you can find banks that will give you extra money for opening a savings with a certain deposit in it. This is a great way to start off your fund, because you’ll be sure to have more money in the long run. You should make sure that when you’re setting up your account that you can make automatic withdrawals from your checking account when you get paid to be put into your savings account. The withdrawals should be around 20% of your paycheck. This sounds like a lot, but unless you’re making less that minimum wage, it shouldn’t be much of an issue. IT may seem like it at first, especially if you’re used to spending money wherever and whenever you want, but it’s important that you understand the role of money in your life and what makes it important.

You should also make sure that when you’re doing this, and possibly even going the minimalist route, that you buy high quality items to begin with. Investing up front on items that will last you for years is a much better idea than buying cheap items you’ll have to constantly replace. Shopping at places like Kohls for high quality and well made clothing, for example, is an excellent way to save money in the long run.

 

SMSF

5 reasons for setting up an SMSF

 

A self managed super fund (or SMSF) is one of the most up and coming trends for investing your superannuation (a regular payment made by an employee into a pension fund). For years, the trend used to be investing those payments into either a retail or an industry superfund. Times are changing and, according to www.smsfselfmanagedsuperfund.com.au, one of the best ways to invest over the last ten years  is into a self managed super fund.

What are the best reasons to invest in an SMSF?

  1. An SMSF helps you to take control of your superannuation – This type of fund allows you to choose where you invest your money. Being able to choose between different types of investments (international shares, residential and commercial property, term deposits, etc) puts the control back in your hands. If your money isn’t performing like you’d like it to, change it! The power is yours to get the returns you’re hoping to see.
  2. An SMSF will allow you to save money on feesSMSF funds are one of the most cost effective funds out there. Most fees are set, no matter how much money you have to invest in your self managed super fund. This is very different from a lot of other funds. If you are investing a thousand or ten thousand, you should end up paying the same amount. This is especially beneficial for those just starting out.
  3. An SMSF allows you to manage up to four superannuations in one single fund – If you’re managing other people’s funds as well as your own, changing to a self managed super fund allows you to consolidate to a fund with one annual fee. This usually counts for up to 4 people.
  4. An SMSF allows you to combine Pension and Accumulation funds in one place – With some standard funds (namely, retail and industry funds), your money is separated into two different funds : one pension fund and one accumulation fund. An SMSF allows those benefits to be combined and managed in a single place. This reduces the fees you have to pay to manage two separate funds into one.
  5. An SMSF allows you to transfer personal assets into a fund – Instead of cash, a self managed super fund allows you to contribute assets (for example : managed funds, shares, and commercial property). These are called specie contributions and allows you to consolidate or combine family assets under a single tax umbrella. However, you should make sure you consider capital gain taxes in this type of contribution. Depending on the amount you are investing, it might not make sense in relation to the taxes.

In closing, you should definitely consider the advantages of switching your money to a self managed super fund to make the most efficient use of your investments with the fewest fees. It allows you to combine multiple funds, multiple users and gives you the flexibility to invest how you want to invest.

Untitled-1

SMSF Auditor – Do You Need to Have Your SMSF Audited?

The federal government intends to look at the Cooper Review recommendation on SMSF auditor autonomy to determine whether or not alterations are needed to the current standards. Leon Yap delivers tremendous experience auditing across several legislative frameworks and is an accredited professional SMSF auditor. A good solid Self-Managed Super Fund is necessary to be audited by your Recognized SMSF Auditor.

Self-Managed Superannuation Funds (SMSFs) have been capable to buy property, when it is in accordance with one’s own investment system, although not many of them meet the expense of two due to the fact until September 2007 they could never borrow. The Superannuation Industry Supervision Act 1993 demands trustees of the SMSF to be able to have their particular fund audited each year by a licensed SMSF auditor. Just about all superannuation funds usually are necessary to appoint trustees.

The ATO’s SMSF Announcement gives regular information and facts for trustees connected with self-managed super funds, income tax agents, authorized auditors, financial planners and also administrators around key regulatory and administrative topics, and also any kind of essential advancements of great interest with the industry. Due to the laws around super funds, they can be dealt with quite diversely pertaining to lending purposes. In order to be eligible to tax concessions available to complying funds, a self managed fund must satisfy selected residency conditions and be viewed as a resident regulated fund all the time within the income yr.

An in-house asset is really a loan to, a great investment in, or perhaps a lease with, an associated party of your fund, or even an investment within a connected trust of the fund. Normally, being a trustee you can be restricted from loaning to, investing in or perhaps leasing to an associated party of the fund more than 5% of the fund’s total assets.

The SMSF can also be necessary to be audited by a great Authorized SMSF Auditor. Furthermore, the increased concentration on important problems such as auditor independence and SMSF auditor proficiency requirements has heightened the interest being paid to SMSF auditors along with the robustness with the audit that they conduct for your SMSF. The SMSF Audit Firm audit organization not only eliminates any independence issues yet also enhances your entire SMSF service offering to your current clients by partnering through a market prominent expert SMSF service provider.

In certain cases it might be organized for the SMSF Audit Firm auditor to call at your practice either to talk about our own services or conduct the audits.

The service is definitely very dissimilar to the common “once a year” services that a lot of clientele of the accounting practice are generally use to. We are able to offer a whole system including audit or perhaps you may wish to conduct the audit.
For further details about self-managed funds, go to www.smsfselfmanagedsuperfund.com.au and get lots of detailed information inside their website. You can also search directly to search engine if you don’t get what you want or if you are still looking for more.

FInd out more informations in our post here: http://www.crocotta.ca/smsf-administration-tasks-activities/

Untitled-1

SMSF Administration Tasks and Activities

An SMSF or self-managed superfund is a method of preparing for financial independence during retirement and is best described as a “DIY superfund” as compared to its other superannuation counterparts. It means the trustee who manages and does the superfund administration also the recipient of the payout upon retirement. You must be aware on this because this is somehow very important to know as you will be getting your financial status involved.

When choosing an SMSF auditor that can perform audits at arm’s length, as set out by the ATO, individuals and accountants want to consider organization’s that deliver the best expertise in combination with great customer service.

Before setting up your self-managed super fund, it is essential to know the important tasks and activities involved in the set-up process and ongoing management. Below are some important to-do items essential to an effective administration of self-managed superfunds, in no particular order:

  1. Over-all Compliance

First of all, SMSFs need to be compliant with a number of laws, rules and regulations set out by the taxation office and as mandated by the government. You can even visit their website for more available details and you can check valuable information with them about self-managed super funds.

  1. Maintenance of Relevant Records and Documentations

Keeping and updating records and the documentation reflecting the administration and management of your superfund is a mandatory. These records will be used by the taxation office in auditing your SMSFs to see that there is compliance in every step of the process. The taxation office requires the records that should be kept include the following:

  • Meeting transcripts containing important investment decisions
    • All SMSF transactions that took place
    • Operating statements, statements on the fund’s financial position and other annual statements
    • Declarations from trustees
    • Copies of information provided to members (such as returns)
    • Any tax-related documentation such as income tax and deduction documentation
  1. Appointment of an Accredited Auditor

The trustee is mandated to appoint an independent, approved auditor to audit the fund. A required report compiled by the auditor must be presented to the trustee. It should be given to the trustee on or before the fund is required to lodge its SMSF annual return. The main task of the SMSF auditor is to examine the funds’ financial statements and assess the fund’s compliance with the laws and regulations governing superannuation in general and SMSFs in particular. More details here: https://www.moneysmart.gov.au/superannuation-and-retirement/self-managed-super-fund-smsf

  1. Filing of Statements and Returns

SMSF administration also means filing the required returns and statements. For example, the trustee must lodge the annual return by the due date to:

  • report income tax
    • report super regulatory information
    • report member contributions and pay the supervisory levy.

When benefits are rolled into other funds, an accurate rollover benefits statement must also be lodged.
Because SMSF administration is so complex and time consuming, it can be highly beneficial to work with an experienced accountant and SMSF auditing expert. It makes it much easier to manage the SMSF administration and ensure ongoing compliance of your self-managed super fund.