If you have any questions about a self managed super fund or to check if it is suitable for you, please seek professional financial advice from a financial planner first.

This aside, there are some advantages in having a self managed super fund, including greater control over your investments and a wider choice of assets in which to invest, such as property or shares. The sole purpose of a self managed super fund must be to provide money for your retirement so you cannot use assets in the super fund for your current enjoyment. For example, you cannot buy property with your SMSF and then stay in it.

If you do decide to establish your own super fund, where do you start? According to the Australian Taxation Office, there are four key steps:

First step: Prepare a trust deed

Our financial planners recommend that you speak with your accountant or solicitor. Be aware that while your accountant or solicitor may be able to help you establish the SMSF, they cannot advise you on whether it is the right financial decision for you unless they hold an Australian Financial Services Licence. For professional financial advice on SMSF or your investment strategy, please speak to one of our qualified financial planners for more details.

The trust deed sets out such matters as the details of the trustees, how they are appointed, their powers and the conditions for contributions and benefit payments. You must make sure the trust deed is dated and properly executed.

All SMSFs must have trustees and in turn all members of the super fund must be appointed trustees. Anyone over the age of 18 can be a trustee, as long as they have not been convicted for an offence involving dishonesty or are undischarged bankrupts.

As a trustee, you are legally responsible for the actions of the super fund. Your responsibilities include filing an annual tax return, lodging member contributions statements and appointing an approved auditor to complete the annual audit.

Second step: Elect to be regulated by the Superannuation Industry

Elect to be regulated by the Superannuation Industry (Supervision) Act (SISA) in order to receive concessional tax treatment.

As a trustee, you will have 60 days to lodge your election with the Australian Tax Office. You an do this by completing an application form to register for the new tax system superannuation entity. This can be done online at the Australian Business Register (www.abr.gov.au) or by contacting the Small Business information line on 13 28 66.

Upon submission of this form, you will be issued with a tax file number and an Australian business number. Once you have elected to be regulated, then the decision cannot be reversed without winding up the super fund.

Third step: Preparing an investment strategy

This involves formulating an investment strategy that takes into account risk, return, diversification, liquidity, cash flow, asset allocation and the ability to discharge existing and prospective liabilities. You may need to speak to a qualified financial planner to steer you in the right direction.

Fourth step: Open a bank account

Open a bank account in the name of the super fund to keep your superannuation fund assets separate from your personal assets.

Running your own self managed super fund is not for the faint hearted. Severe penalties an apply if you contravene the requirements set out in the legislation, such as failing to meet the sole purpose test of saving for your retirement or the fund borrowing money to invest.

For more information about setting up a self managed super fund or if you need help with your investment strategy, speak to one of the financial planners at Intellichoice on 1300 55 10 45.