How to set up a Self Managed Super Fund (SMSF)

[@stephendegenaro6387]

This was brilliant, more detailed than most. 🙌🏽😎

[@jiangjenny7119]

Thank you Derek for the detailed explanation, that’s very helpful 👍

[@accg224CCA]

Thank you for this insightful video Derek! Everything is well explained and understandable. I'm loving these TwelveAccounting tutorial videos

[@positivejamesuk]

Very insightful ! Great video

[@user-sc2ri1ko2x]

It would be awesome to see an updated video on the best ways to borrow to buy property within a smsf I like your suggestion but would like to know more 🙂

[@TwelveAccounting]

i need to be careful when it comes to offering 'Financial Advice'. derek

[@user-lp6le1ef5x]

Thank You Derek for this explanation, this is very easy to understand and takes the guess work out of setting up a SMSF

[@SharonWeller]

Thoroughly explained in detail each step of the process.

[@twobytoo22]

Thankyou Derek, Great and Very Informative, The more l have researched SMSF the more lm interested in starting one in the near future. Even though lm not much of a fan of paperwork. Many Thanks for this video😁👍

[@tdtson]

Great video. Thanks Derek

[@jyotsnakora5232]

Hi Derek, well explained and Perfect timing. We're looking at setting up an SMSF 😀. Can you do a followup video on how assets are shared between members(is it based on the amount they contribute?), what happens if one of the member reaches preservation age, in future can we add kids to same smsf and if yes, how will pension work for parents?

[@TwelveAccounting]

You can elect to either share (on a pro-rata basis) the assets of the fund between the members, and the income is shared on the same basis. Or you can elect to have assets segregated and allocated to a specific member. Segregation requires a bit more work and separate bank accounts, but it can be done. When a member has a pension account within the fund, an actuarial certificate is then required to separate the assets and income that are tax free (this is an additional expense every year). derek

[@Jujashan]

@@TwelveAccounting What happens when one of the members retires before the others?

[@TwelveAccounting]

@@Jujashan even if they retire, the member can keep their money in the SMSF. Their balance can be set up as a pension account if they want or remain as an accumulation account. they don't have to take it out if they retire. derek

[@matta8359]

You talk about lawyers making it sound complicated but that’s what you’re doing! I had a 1 minute convo with my accountant, “hey can u set me up a SMSF? How long will it take? Ok I’ll come in and sign the paperwork in a couple weeks thanks. Easy as.

[@TwelveAccounting]

You must be very trusting of your accountant. derek

[@mihirv6604]

Great video - well done! Thanks 🙏

[@deepak9603]

Loved the video Just want to ask - as you said- lot of time, effort and fair bit of money has to be spent to setup and then ongoing expenses. Is it worth to buy a investment property especially has to pay 2-4% extra interest rate above the standard variable rate

[@TwelveAccounting]

it will come down to a bit of number crunching. as with any investment property, the real advantage comes from Capital Growth. Long term growth is probably best in a SMSF as the tax treatment is very favourable. You might have to pay a bit extra now in higher interest, to save tax in the future. derek

[@superumesh777]

Thank you

[@johnsmith5354]

Hi Derek Thanks for the great video. Just wondering is it difficult to close a SMSF with corporate trustee?

[@TwelveAccounting]

Once there are no assets left in the SMSF (the members have been paid their benefits or have rolled over to another fund), the ABN of the SMSF can be cancelled and the ATO notified there are no assets. The SMSF can be wound up and the corporate trustee de-registered. derek

[@xrpmate9264]

What questions do the ATO ask upon calling you for approving

[@TwelveAccounting]

The ATO will ask if you (trustee) understand the requirements and responsibilities of being a Trustee. They will also make sure you have no personal outstanding ATO lodgements (Tax Returns, BAS's etc) and will ask if you have previously acted as a Trustee of a SMSF. derek

[@johnsmith5354]

Hi Derek Thank you for the excellent video. I husband & wife with joint super in one SMSF - are the contributions kept separate ? What happens if one retires 1st & wants to access their super 1st - is it easy for them to access their super? Or do we both need to be at preservation age to access super?

[@derekcraignolan]

the members of the SMSF have a 'member's account' that shows what part of the net assets of the SMSF belong to them. even though the actual assets may be 'pooled' together, they are accounted separately, so you and your spouse know exactly what your balances are, so if you retire you know exactly what is available to be withdrawn. derek

[@johnsmith5354]

Thanks so much.

[@nick3576]

Just to clarify, you can start a SMSF as an individual by using a using yourself as both a trustee and director of the trustee company?

[@TwelveAccounting]

Your SMSF can have either: minimum of two individual trustees OR a company. The members of the fund will need to be the trustees OR directors of the trustee company. derek

[@filizseher7784]

So if you want to have SMSF as an individual you have to have a company which means u need to be self employed ??

[@TwelveAccounting]

No. You need to have a company to act as the trustee of the SMSF. The rules require either two trustees (in case 1 dies) or a company as the trustee (companies don't die). Your employer can make contributions to your SMSF no problems. derek

[@music84able]

What happens if you move to another state, or overseas after it is set up? Do the rules and regulations change?

[@TwelveAccounting]

The SMSF is regulated by the ATO which is a federal body, so there is no issue between states. If you move overseas, you might have some issues if the trustees (or directors of the trustee company) are non-residents for more than 2 years. derek

[@bencoman]

Are there any issues with living in a house owned by my own SMSF? Or my children living in a house owned by the SMSF?

[@TwelveAccounting]

there are many issues. basically, you can't. derek

[@jamescooksey4864]

Very condescending on managing your own investments on the market.. excluding what I have put in the last 3 years, MLC have almost made more money off it than I have. Just puts these people out of work.

[@icmull]

What about borrowing for shares?

[@TwelveAccounting]

it is possible, but i am yet to find anyone who will lend money to a SMSF to do that. It's hard enough now finding a bank to lend to a SMSF to buy a property. derek

[@monicasimmons777]

@@TwelveAccounting Is it possible for your own company to lend money to an SMSF