DIY Super for Business

Self-Employed people have understood these issues and have adapted to Self Management in large numbers. Many individuals now believe that they can match or better the return offered by publicly offer Super Funds, whilst reducing costs and gaining direct control over investments and by having the flexibility to change their investment mix.
The perception that superannuation monies are locked away without any means of effective control until retirement has long been discarded by Investors keen to manage their DIY Super Fund.
A wide variety of people set up DIY funds with the overwhelming majority believing it is the ideal method of maximising their retirement benefit for both themselves and their families.

Individuals on high incomes and / or successful business operations and / or retirees with large amounts currently invested in superannuation or an ADF, should assess their existing superannuation arrangements as they may be better off having the control and investment flexibility that their own fund would offer.

Briefly, a DIY Super fund is as a pool of assets, such as cash and shares and property that you have total control over. The pool of assets represents the amount of superannuation that you have accumulated over your working life. The assets instead of being in your name are in the name of your DIY Superfund. Your employer could contribute to this pool or you could help it grow by Salary Sacrifice for your retirement years.

Your current super benefits could be where your employer chooses to contribute. There are several types of funds such as

• Public offer funds like AMP, Colonial, ING etc
• Industry super funds such as REST etc

Your Super Fund should send you annual statements stating

• Opening balance
• Additions (new money - contributions)
• Income or Loss (addition or deduction)
• Closing Balance

Fact is that this is your money and you are paying someone to invest it for you. Some funds give you a limited choice in investment decisions, although the fund manager makes most day-to-day decisions. Decisions like what investment to make, when to make, where to make are made for you.

By joining such a fund, you give this decision making right to the fund manager in lieu of management fees to be paid by you.

You may pay an entry fee to join the fund and as an industry average may be paying 1.5% of super balance as management fees to the fund manager. Hence if your family fund balance is $100,000 your family may currently be paying $1,500 or more to various fund managers to look after your money.