SMSF: How I Took Charge of My Financial Future


Financial future

People say that we all have one flaw, one negative trait that is stronger than our reason. All right, all right, I don’t know about other people, but I definitely say that. My inability to trust strangers, particularly with matters that matter a great deal to me, is something that has become a part of my personality (an annoying one, some would say). That is precisely why whenever I realize that I have the precious opportunity to get something done without somebody’s assistance, I don’t hesitate to seize it. Having this in mind, the information that my wife and I have set up a self-managed super fund to secure our future shouldn’t surprise you at all.

So, why exactly did we decide to start an SMSF? Well, first of all, you should know that I am a graduate with a bachelor’s degree in financial management, whereas my wife has a diploma in accounting, which means that we both are well familiar with all of the specific details related to our country’s pension system and the way each type of fund functions (including the SMSF). This, as well as the latest positive ATO SMSF statistics have encouraged us to establish and run our own SMSF.

Another important reason why we chose to set up an SMSF is the fact that the members of this form of retirement planning are also its trustees. In other words, they are both the owners and the managers of the fund’s assets (which explains its name). This responsibility is something many individuals dread, especially the ones without the proper knowledge and experience. If you are one of them, I advise you to consider hiring or merely consulting with qualified and licensed financial advisers before you set up your SMSF.

On the other hand, the persons who have studied and prepared themselves for the challenges the ongoing process of running a self-managed super fund brings (like my partner and I have), recognize the value of the freedom to determine the investment strategy they wish to follow and select the investment alternatives they find most suitable for them. Yes, the risk of making wrong decisions and the danger of failure are ever present, but the latest ATO SMSF statistics show that this year’s number of SMSF windups, compared to last year’s one, has decreased significantly. This, of course, is an encouraging trend, one that shouldn’t be ignored.

Now you can see why I thought (and still think) that the option to start my own SMSF is the perfect one for me. It’s the only way my wife and I can be fully in charge of our financial future, after all.