If your clients are considering becoming a Self-Managed Super Fund (SMSF) trustee, having an understanding of how managed accounts work, and the role they can play in an investment portfolio, may help you in providing better advice.
There are many benefits to holding an SMSF, and there’s one extra risk in retirement planning that you may not have realised is better managed in the SMSF environment says Bryan Ashenden, Head of Financial Literacy & Advocacy, BT Advice Services.
While establishing an SMSF can give investors great flexibility in relationship to investment decisions, the trustees do not have full discretion regarding investments. The list of things to take into account is extensive. This document provides a summary of some of these considerations.
SMSFs are treated differently from other superannuation funds in a number of legislative and regulatory ways and in order to qualify for this different treatment, which is generally more concessional, an SMSF must meet a set of conditions above those that all superannuation funds are required to satisfy. These conditions can be found in section 17A of the SIS Act.