How a Self Managed Super Fund Works
The diagram above demonstrates how an SMSF can be a good way for a family (limited to four people) to pool their investments in certain circumstances.
Four brothers, Matthew, Mark, Luke and John, all have varying amounts of superannuation, and decide to open up a SMSF for their future.
Matthew via his job as a stockbroker works on the share portfolio investment side of the fund, while the other three brothers as builders select the property assets of the fund.
Given they all have varying degrees of ownership in the fund, they all receive a rate of return based on the percentage of assets they own, so there can be no favouritism. Their accountants track the progress of the investments and give them their updated holdings each year.
By self-managing and pooling their talents, they have a diversified, secure and far cheaper alternative than standard commercial funds offer.
Call us on (08) 8338 1033 to discuss whether a Self Managed Super Fund is right for you.