trustees make is where they take money
out of the fund for their personal use.
This could be in error or they may just
consider it a short term loan, which they
intend to pay back. Either way this will
generally result in a breach and must be
reported, which could result in penalties.
The key is to treat the fund as someone
else's money you are responsible for and
to maintain an `at arm's length' approach.
there will always be people out there
who promote investment schemes that
will probably contribute more to their
retirement than they ever do to yours.
These schemes come in a range of forms,
from dubious `next big thing' investments
to property developments where you
can only build when the tide goes out.
knowledgeable and educated people have
lost money thinking the same thing. Many
of these operations run very slick programs
to convince you they are legitimate and will
meet their promises.
don't have the knowledge and experience of
professional super-fund managers and lure
them in on the promise of big returns and
financial freedom. I have seen many of these
schemes come and go over the years, so be
warned they are out there and only too
happy to take your money.
your best interests at heart. Every time I see
head and think it was so obvious this would
happen yet the reality is that people who
don't work in the finance industry and
even some that do don't know what to
look out for.
ASSISTANCE
when running a SMSF is to engage the
assistance of professional advisers:
·Accountant: The level of assistance
accountancy firm you choose. While
some firms offer both taxation and
administration services, many are
outsourcing the administration to
focus on the taxation-advice element.
Having someone in your corner who
has a thorough understanding of
super-fund tax law can make life
much easier and reduce the chance of
you running foul of the tax office.
huge help when you are looking to make
strategic and investment decisions. The
adviser should be your sounding board for
decision making and coordinating other
advisers. I have seen many doctors
come unstuck when they take the
`I know it all' approach. My advice is,
don't be one of them. On many occasions
I have met people who have had a SMSF
for years and after a discussion they
respond: "I wasn't even aware I could
do that". As with your accountant, find
someone who specialises in this area
and has appropriate accreditation.
PLANNING