The significance of superannuation plans seems to get lower and lower as people overlook this aspect of their long term career. There seem to be no time to stop and think about the future for a while. To be more specific, when it comes to superannuation planing , bigger part of the work force in the country are not fully aware of the options they have. Moreover, retirement planning is viewed as something that is normal for only experienced financial institutions to handle. What we don’t realize when we sign deals with these companies is that we give away the right to manage our own superannuation fund. That is exactly what the new self-managed superannuation funds in Australia offer. From financial investment to SMSF audit, these funds provide the opportunity to make good investments that you can collect after your retirement. SMSF are organized with one or several members and one trustee as the head of the fund . In order to provide a picture of how these funds operate we will describe functions of the key actors like trustees, SMSF auditors and members.
Becoming a trustee means taking great responsibility on behalf of all members. First of all you must complete a Trustee declaration that indicates all the legal responsibilities the position holds. Before you do this think twice, as the trustee position is equivalent to the position financial managers have in companies. Having proper experience and knowledge in financial investment will help you make the decisions that will bring income to the fund and make members happy. On the other hand, you shouldn’t be so stressed as you are allowed to have professional consultants of different expertise like accountants and financial consultants. Also SMSF auditors will always be available to guide you in the decision making process.
All the work done by trustees can be seen from records of the SMSF audit. Having said so, choosing skilled SMSF auditors is of highest relevance. SMSF auditors must have official certificates to perform revision of the work funds do over one year. Furthermore, an approved auditor is to conduct a financial compliance audit of the super funds operations over the course of one year and provide trustees a report that complies with legal standards. A precise and trustworthy report can help trustees identify their mistakes and learn from them.
Choosing the right people to perform key roles in handling an SMSF is vital for good results. This shouldn’t be much of a problem, as there are many qualified people that can ”fill the shoes”. All you need is good planning and gathering resources before choosing trustees or SMSF auditors.
Source: Superannuation Warehouse