Obviously most people look forward to a time when they can retire, relax at home and only have to go outside to do things that they want to, like take a holiday or make a BBQ. The trouble is though, in order to do that with piece of mind, they have to try and ensure that they have enough funds saved up to secure their retirement and that is not always easy to do. Now however, there is a type of investment fund that is ideal for just this purpose, it is a fund where the member can control what investments are made; how much and in what. It is a fund that will allow them to withdraw some if, after the age of 55, they find themselves just in part time employment but will allow them to withdraw pensions after the retirement age has been reached. These funds are relatively low cost compared to other funds and between 2010 and 2014 increased by a percentage of 12.5 whereas similar funds, during the same period only increased by 9.65%.
These funds are called self managed superannuation funds or smsfs for short and are becoming increasingly popular among those that are trying to take adequate precautions in order to secure their financial security in retirement. Among some of the points that make these finds so attractive, apart from their low costs, are the facts that members control the investments and up to 4 family members can join the same fund, reducing costs even more drastically. Another plus for these fund members is that they are permitted to take out loans for the fund, provided that the loan is used to make investments in properties.
Obviously with any fund, there are regulations concerning the opening of them and also in the way that they are administered and among these regulations is the fact that when several members of a family are in the same fund, only one trustee can be named, after which only the nominated trustee can make investments on behalf of the fund.
This is a reasonable regulation but all the nominated trustees are not always fully conversant with the sometimes complicated requirements imposed on savings funds. For that reason, many people choose to enlist the services of experts in these types of funds.
These experts can be consulted to either just assist in the opening of the fund, ensuring that it is opened as efficiently and cheaply as possible whilst others, opt to pay annual consultation fees which facilitate the experts in assisting the trustee with accounts required for both auditing and tax purposes. If the annual fee is decided on by the members of the fund, these experts can also give the trustee advice ensuring that the investments which they choose to make, are legal and appropriate for these types of funds.
These funds, although they allow members to seek expert advice, still leave the members themselves in the driving seats; making the decisions on exactly which advice they will chose to take.