With the attractive tax concessions in SMSFs, some trustees are looking to invest in complex derivatives within their SMSF in a bid to increase their retirement savings.
Due to the generous tax concessions available in superannuation funds and to members once they withdraw their super in retirement, the government has established annual limits on the amount of contributions that can be made to a super fund either by you or on your behalf.
All SMSFs require a trust deed, which sets out the governing rules for the operation of a given fund. Along with abiding by superannuation legislation, trustees are also required to follow the rules set out in the trust deed.
Every SMSF requires an investment strategy. To put it plainly, an investment strategy is a document that details what the SMSF is going to invest in and why.
The superannuation system was established to assist individuals with their retirement plans and so, for the majority of us, our superannuation benefits are ‘preserved’.
When thinking about setting up an SMSF, you need to decide whether you want to have individual trustees, or a company trustee where you would be a director.
One of the reasons SMSFs have rocketed in popularity over the last few years is that they allow investors total control over where they invest their retirement savings.
