Many people are obviously concerned about having enough money to retire and so they often resort to opening some kind of investment fund which will hopefully provide them with a pension when the time comes. There are several different types of investment fund though and of these, most people believe that the best ones for those that are trying to save for their retirement are self managed superannuation funds. Not only do these types of funds permit you to withdraw a regular pension at the appropriate age but also, if you are over 55 and only have a part time job, will also allow you to withdraw limited amounts. Obviously, as their name suggests, it is you that makes the decision as to which investments to make and when to make them. As these particular funds are for the purpose of providing a pension in later years, they are permitted to apply for loans provided that the money borrowed, is only spent on property investments.
These types of fund have become popular and often, several members of the same family want to open similar funds and so allowances have been made that will permit up to 4 members of a family, being part of the same fund. On these occasions though, just one person can be nominated to be the one that actually makes the investments on behalf of the others. These chosen people are known as the fund’s trustee and they are the ones that manage the fund, all be it in accordance with what the other members of the fund request. It is the trustee therefore that is responsible for ensuring that all the investments made are allowed for that particular type of fund and is also responsible for insuring all auditor and tax needs are correctly presented at the correct times.
Many of these trustees are new to financial regulations but if they make mistakes, the consequences can be quite grave and so many of them opt to acquire the services of a company that specialize in these types of funds. When trustees seek this kind of assistance, they do not expect the company to give them investment advice as far as which investments to make, as that is a decision for the members only but, they do expect the company to advise them if an intended investment is illegal for these self-managed funds. Many of the trustees will also illicit the assistance of one of these companies when they initially open the fund as, with their assistance, the procedure is often quicker, easier and even less expensive than if they had attempted to open it on their own. Of course, another time that these companies can prove invaluable is when it comes to audits and tax returns. Even for the most experienced accountant, these are sometimes occurrences that can cause some stress and so the trustees, unfamiliar with such matters, can have a very difficult time trying to ensure that all the correct accounts are presented in the correct way and at the correct time.