Here are some of the tips for SMSF that elaborate what you should do and what you should avoid in order to make the best decision out of it.
What Not To Do?
- Lend money to you or any relative (not even for a day)
- Pay yourself for work for the SMSF
- Buy Residential property from yourself or a relative
- Rent Residential property to yourself, relative or entity you have an interest in
- Buy shares in a private company, trust or partnership without checking with your accountant
- borrow money without consulting your accountant
- Run a business
- Breach Annual Contribution Caps
What To Do?
- Have an investment strategy and invest in line with the strategy
- If in Pension mode, physically pay pensions before 30 June
- Keep all documentation in respect of SMSF transactions. SMSFs are audited and auditors need documentation to support the accounts.
- Pay contributions by 30 June. There is no carry over!
- Keep all SMSF assets separate from your personal and business assets
- If you make a mistake, tell your accountant straight away!
- Invest solely for your retirement
- Consider Insurance Needs