Having a self-managed super fund (SMSF) allows you to be in control of your investment. It means that you will have full control of where your money will go. You can set up an SMSF fund for yourself or with up to four trustees for the main objective of saving up for retirement. While the idea of having sole control over your money can be appealing, it requires plenty of hard work. It is why many trustees choose to seek the help of an SMSF administrator to let someone guide them when making crucial decisions regarding their investments.
Choosing the right SMSF administrator is as critical as deciding where you will put your investments. You will need to entrust your money with these professionals since they will help you set up the fund and manage all the necessary SMSF administration. They will also remind you to comply with all the state-required super and tax obligations.
Here are several guidelines to help you pick the person who will make your SMSF management bearable.
Check How Long The Administrator Is In Service
Since you will use your hard-earned money to fund your SMSF, you need to ensure that the administrator has a wide range of experience handling this type of investment. They must have a good track record in taking care of a client’s SMSF.
Aside from the longevity in the industry, it is also necessary to know if the SMSF administrator is highly competent in the job and possesses a positive reputation, so you can entrust your investment to that person.
Look At What Is Included In Their SMSF Service
Some SMSF administrators offer comprehensive services to help you get your money’s worth if you decide to get them on board. Aside from the fund administration, these types of administrators can help you set up the SMSF, including the establishment of a corporate trustee when needed. They can also handle annual reporting, auditing, and compliance tasks.
You may also find an SMSF administration service provider that can also serve as your financial adviser. You only need to check if the administrator also has an Australian financial services (AFS) licence from the Australian Securities and Investments Commission (ASIC) if you want the person to include this service in the package.
Analyse Their Fees And Commissions
Always make sure that the SMSF administrator discusses all the commissions and fees they will charge from your account. You need to have a clear idea about how the administrator of your SMSF will compute all the charges, so you will not be surprised about the amount that the professional will charge you during all your transactions.
It is always recommended to ask questions regarding their fees, especially those that are not very clear to you. It will help build trust between you and your service provider.
Having a professional administrator for your SMSF investment could be an ideal decision if it will be your first time setting aside some money for your retirement benefits. They will help you keep track of all your investments and make the management less complicated. It is also the perfect choice if you believe that you cannot completely commit all your time in handling your SMSF investment. So always make sure that you hire a trustworthy administrator to handle your funds.