What You Need to Know About DIY Super

While people like the idea of a DIY super fund, it does not mean that they will be doing everything by themselves. Even setting up the fund and preparing the trust deed will require professional help. The trust deed is an important document that details exactly how and by whom the DIY super fund will be run.

Many people are opting for DIY super because they like the freedom it offers them as regards their investment choices. They feel that managed funds may not give them the same opportunity for good returns as a DIY super fund could. There are several steps to setting up your own super fund and while that sounds simple, there is much more involved than it would first seem. In spite of this, it is possible for most people to set up a DIY super fund.

Of course, it cannot be done alone. Even the first step must only be taken with professional advice. That is setting up the fund to start with. Preparing the trust deed can only be undertaken with the advice of a professional. The trust deed sets out how the fund will be run. The information that it must hold is who the trustees are and how they will be appointed – and removed if necessary; what powers the trustees will hold and who will be members of the fund. It will detail how contributions should be made and how the members will be paid when that time comes. There will also be information about winding up the fund and how the assets should be valued.

A separate bank account must be set up to hold the fund’s assets. This should be separate from all personal and other business accounts. If your DIY super fund has more than one member, they must all be trustees. All should be responsible for running the fund, which includes choosing the investments and doing the ongoing work such as administrative and compliance requirements.