To retire without any worries about our finances is possibly a dream that we all have but for many of us to attain that dream, we have to open an investment fund. Investment funds are often looked at with scepticism by many, as they incorrectly think they are just another way for youngsters to make money from the hard working masses. Although this isn’t usually the case, it is true that professional managers of funds do probably have their own interests foremost in their minds when deciding which investments to make however, there is a solution to this potential problem and that lies in opening a self-managed superannuation fund. These are funds that allow the fund holders to make their own decisions as to what should be invested in, when the investments should be made and how much should be placed into each individual investment. Perhaps surprisingly to some but perhaps not so surprizing to others, these types of self-managed funds usually perform better than other professionally managed funds. In the years 2010 to 2014, self-managed funds increased by 12.5% on average whilst the increases in professionally managed funds only reached on average 9.65%.
These types of self-managed funds are also often cheaper to set up and run than other funds an can become cheaper still for a family as they permit 4 family members to join the same fund. Obviously in the cases where there is more than one family member in a fund, as there can only ever be one manager, the manager, known as the trustee for the fund, must be nominated among all the member and then that trustee will be responsible for investments made, accounts that have to be kept and of course reporting to the other members. No matter how well intended these trustees are, as they are often not too familiar with the ways of the financial world, they can sometimes meet some difficulties regarding keeping within the strict guidelines for any fund. Realizing this possible shortfall, some companies now offer their services to trustees and are able to assist them not only in opening a fund but also on the annual managing of it. These firms like smsfselfmanagedsuperfund.com.au do not offer advice as to which specific investments should be made, unless of course asked, but are more concerned with ensuring that the trustees only make investments that they are allowed to. These fund specialists are particularly useful when it comes to giving advice as to what will be needed by auditors or even tax departments. The specialist is able to ensure that when the right time comes, the trustee has all the correct accounts, correctly completed and available for either an auditor or a tax department representative, something that can certainly save a trustee a lot of problems at a later date.
Among the advice that these specialists may give the trustees is, letting them know that as a self-managed fund, they are allowed to apply for loans, provided that the funds asked for are all used for property investments.