Superannuation is a form of long-term saving for your retirement. Your retirement savings grow because money is paid in regularly, invested at a concessional rate of tax – and you can’t access it for day-to-day spending needs.

Self-managed superannuation is one option for the self-employed and for anyone who wants to have control of their investments.

There are a lot of advantages to setting up a self-managed superannuation fund:

• income is secure
• the fund can serve generations of your family
• there’s a wide choice of investments
• it can be easily administered
• assets are protected
• the fund is favourably taxed

However, self-managed superannuation funds do need you to be involved. You become the trustee of the fund and are legally responsible for the investment strategy and its management. You can only use the money for the purpose it was intended- saving for your retirement.

Self-managed superannuation funds take time, knowledge and skills: it’s a complex business. Before you consider a self managed superannuation fund you should understand all the issues surrounding these funds. The cost of running SMSF can be expensive on balances under $200,000. Get expert advice from MeritPlan on how to get it started and keep it on track.

This information does not take into account your particular needs or circumstances. Do not act until professional advice is received.