All of us hope that when we come to the age of retirement, we will be able to retire without any financial worries but sometimes, in order to meet these financial needs we depend on the financial astuteness of others by joining an investment fund which is managed by a professional. However, in many cases that professional is more concerned about their own financial needs than they are about our retirement. The solution to this potential problem is to open a self managed superannuation fund which affords you the opportunity to make your own decisions in as to what to invest in, when and how much. Although these funds are self-managed, meaning not managed by a professional, between the years 2010 and 2014 these funds out-performed other funds. In that period, self-managed funds increased at a rate of 12.5% whilst other, similar funds increased by a far lower 9.65%
As well as out-performing other funds, these types of funds are ideally suited for investing for retirement. They will allow a pension to be paid to a member once they reach the age of retirement plus, if a person is only 55, they too can withdraw limited funds if they are only employed part time.
Obviously the idea of any investment fund is to make money and these types of funds are allowed every opportunity to, even by allowing funds to borrow money on the condition that they use the money to invest in properties.
All funds obviously cost something to set up initially and have on-going expenses but these types of funds have fewer costs than most of the others plus, to save on costs up to four family members may join the same fund. On these occasions though, as only one person can be authorized to actually make investments on behalf of a fund, the four will have to agree on one person to be the fund’s trustee and make all the investments on their behalf.
Whether you are managing a self-managed fund for yourself or you are the nominated trustee for a family fund, it is doubtful that you will be aware of all the intricate financial regulations associated with different types of fund. However, as this is a common factor there are now firms that specialize in giving advice to trustees, enabling the trustee to only make investments that they are permitted to do. These same specialists, if hired from the out-set, can afford you a swifter and easier setting up of the fund, probably at less cost as well. If having allowed these specialists to set up your fund and give you on-going investment advice throughout the year, they will still show their best value for money when it comes to the time of year when you have to present your accounts to auditors or tax collectors. As specialists in this field, they can assist a trustee in ensuring that all accounts concerning the fund are correct, complete and presented on time in accordance with current regulations.