Even though people say that money can’t buy happiness, which is true to some extent, they do provide financial stability and security. Moreover, the world is forcing us to keep up with the newest trends, which often times makes us spend more than we’d like to. But no matter how hard we hold up to certain values and virtues, there’s no denying that money plays an important role in our everyday lives. It’s needed for the most necessary things, be it for clothing, food, every day supplies, education, and so on.
Furthermore, most of us want to secure means for our children, so they can grow having what they like, until they are old enough to provide for themselves. And what most people don’t appreciate enough are long term investments, like the superannuation funds. I doubt there’s anyone who hasn’t heard about superannuation funds, which are essential to financial stability over the years, especially after retirement.
One of the biggest reasons this fund is so popular is because it gives people the opportunity to involve themselves in the management and investment process. Some people are terrified by the idea of having to make big investment decisions that might backfire, and for a good reason. The management of the superannuation fund is quite complex and it takes a lot of understanding if you want to operate it successfully.
One of the most difficult decisions you have to make is whether you should opt for a corporate trustee or an individual trustee. The name of a corporate trustee is quite misleading, since its purpose is to make handling of the fund easy. On the other hand, a SMSF with individual trustees needs to have at least two trustees. This means that any investment you make will have to be approved and signed by another person, which means giving control to another individual. While as a corporate trustee, you are the sole manager of that company giving yourself full reign over your fund.
In addition to complete control, you can also take advantage of the method of adding or removing another member. If you decide at some point that you want to add a new member, it’s much easier to do it with a corporate trustee. And if in an unfortunate turn of events a member of the fund passes away, the fund planning is much easier with a corporate trustee, as only the director of the company will be changed while other members will remain untouched.
All in all, being a corporate trustee has it’s ups and downs, but if you want to have complete control over your fund, it’s the right way to go about your superannuation fund. You can further discuss the topic with SMSF professionals and advisers to get more information on the matter, leaving nothing to chance and getting the most out of your fund.