Many benefits from setting up your own Super Fund

THERE are many reasons, apart from cost savings, that people set up self-managed super funds (SMSF). Being in control of your financial destiny, not having to deal with a slow-moving bureaucracy and having direct investments in a super fund are three other big reasons.
Q. Is it possible to set up a SMSF so I can reduce the management costs I now pay, and shift the money I have in my present super fund, even after retirement? If so, what is involved?
A. An SMSF can be set up at any time and funds held in another super fund rolled into the SMSF, no matter what the age or retirement status of the member. The main restriction applies to a member's age and their ability to make further concessional or non-concessional contributions. Once a person turns 65, they must pass the work test to make further contributions.

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To set up your SMSF, you will either need to have another person join the fund as a member and trustee, or you will need to incorporate a company that will be the trustee of the fund, with you acting as the sole director shareholder. You will then need to have a superannuation trust deed done.
Costs for drawing up a trust deed can vary widely, from as little as $110 up to more than $1000, depending on who you use. It pays to shop around and make sure you are not paying too much.
After the deed has been finalised and signed, you must then apply for an ABN and tax file number for the fund. Then the SMSF's bank account must be set up to receive the funds from your existing super fund as a rollover and any new contributions.