If you’re wondering: “How do I set up an SMSF?”, then these 5 steps should help.
Determine your trustee structure
Each member in an SMSF must either be a trustee or a director. You can choose from an individual trustee structure or a corporate trustee structure. If you choose an individual structure, you need at least two members. If there is only going to be one member, then you must choose a corporate trustee. We take care of everything to do with incorporating the company prior to establishing your SMSF.
Receive your SMSF documents
Your SMSF establishment pack will contain:
Your SMSF trust deed
Application for SMSF membership, including the provision of tax file numbers and personal details for each member
Minutes for the initial meeting held by the trustees
The election by the fund to be a regulated fund by the ATO, and the ABN and TFN application form
An Investment Strategy for the fund
Nomination of Beneficiary forms to ensure your instructions for the balance of your members benefits are noted
The establishment process can take you up to 30 days as the ATO takes anywhere from 7–28 days to provide the SMSF’s ABN number. We process the documents as quickly as we can for you!
Set up your SMSF’s bank account
Choose a bank to set up an SMSF bank account with. This will be your fund’s everyday transaction account for receiving and paying money. We aren’t aligned with specific banks but can provide recommendations based on your situation and needs.
Rollover your existing superannuation and start contributions
Once we provide you with your new SMSF ABN, contact your existing superannuation provider and request rollover forms. Complete these forms to facilitate the transfer of your superannuation money from your existing provider to your new SMSF bank account.
Alternatively, if you’re ready to make in-specie contributions (contributions to your fund in the form of non-monetary assets) and/or cash, you’re ready to go!
Review the insurance cover you have with your existing super fund provider before rolling all of your super monies into your new SMSF. An SMSF can hold an insurance policy on your behalf but you most likely won’t be able to take the policy with you from your previous provider. You will need to establish a new policy and you don’t want to be stuck with no insurance cover!
Define and implement your investment strategy
Have you finalised your fund’s investment strategy? Important items to consider when formulating your investment strategy are:
The overall investment objective of the fund
The desired rate of return
The risk profile of each member
The risk profile of the fund
Diversity of investments and asset classes
Anticipated time of each member to retirement
Insurance needs of each member
Now that your fund is established and you’ve considered your investment strategy, it’s time to start investing! You can do this on your own or speak to one of our in-house investment advisors who can provide you with proactive advice to grow your super.