A self-managed super fund (SMSF) is a private fund that you manage yourself. SMSFs are different to industry and retail super funds. An SMSF can have up to four members, who are friends or family Most SMSFs have two or more. As a member, you are a trustee of the fund - or you can get a corporate trustee. In either case, you are responsible for the fund. While as the SMSF’s Trustee you are responsible for the fund, Ord Minnett’s advisers can provide extensive support by managing investments, making strategic recommendations and working closely with the SMSF’s accountant to simplify tax obligations. An SMSF is a platform which allows for the investment of member contributions and the provision of benefits in the form of either a lump sum or pension upon the retirement of a member. SMSFs are established for the sole purpose of providing retirement benefits to members.

Trustees manage SMSF funds by making investment decisions. It's a legal requirement for SMSFs to have a documented investment strategy. This investment strategy should satisfy the sole purpose test and be used to guide trustee decision making.

There are a range of benefits in establishing an SMSF:

• Potential to reduce the costs involved in managing your investments
• Potential for greater investment choice and control over investment strategies
• Opportunity to achieve the income you need for retirement
• Provision for beneficiaries through Estate and Succession Planning
• The ability to transfer holdings into a generally more tax-effective environment
• Business owners may be able to buy their own business premises in the SMSF

As Trustees of an SMSF, you are required to ensure the Fund operates for the sole purpose of providing retirement benefits to members. As part of these responsibilities, the Trustees must prepare and implement an investment strategy for the SMSF. The strategy must reflect the purpose and circumstances of the SMSF and take into account:

• The maximisation of member returns whilst acknowledging various risks
• An appropriate level of diversification
• The ability to provide income to members upon retirement and meet the costs involved in running an SMSF

Trustees must make sure that all investment decisions are made in accordance with the documented investment strategy of the fund and should seek investment advice or appoint an investment manager in writing if in any doubt.

An Ord Minnett Planner & Adviser in collaboration with other SMSF professionals can help with the following:

• The establishment of a Trust Deed
• Obtaining an SMSF Tax File Number (TFN) and Australian Business Number (ABN)
• An SMSF establishment meeting including Meeting Minutes & Member Records
• Formulating an SMSF Investment Strategy
• Rolling over existing superannuation into the SMSF
• A financial plan including asset allocation & income projections