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This commentary is written by Vanguard Principal, Corporate Affairs & Market Development Robin Bowerman. The title is A peak time for would-be SMSF trustees

It was first published on Thursday 28 June 2012

And is read by Michael Mullins

Please remember that advice in this podcast represents a general view. It is recommended that you seek specific financial advice, before making investment decisions.

More self-managed super funds are typically set up in July than at any other time of the financial year.

The logic is clear. By establishing their SMSFs early in a financial year, the fixed annual costs of running a SMSFs are spread over as long a period as possible.

Superannuation statistics from the Australian Prudential Regulation Authority (APRA) show that the number of SMSFs increased by 10,273 between July and September in 2011.

Over the past 12 months to March 2012 (the latest figures available), increases in SMSF numbers in the other quarters were 7,094 (March quarter 2012), 8,690 (December quarter 2011) and 7,072 (June quarter 2011).

These statistics suggest that the minds of more people than usual are now focussing on making final arrangements for a new SMSF to begin within the next few months.

It is obviously in the interests of would-be SMSF trustees to become as knowledgeable as possible about the rules, responsibilities and implications of running a self-managed fund.

In addition to gaining quality financial planning and fund administration advice, potential trustees can easily gain access to plenty of valuable SMSF guides written for people in their position.

The ATO, in its role as one of the regulators of self-managed super, has a series of online publications including Thinking About Self-Managed Super – Six Steps to Work Out if Managing Your Own Super is Right for You (PDF); Setting Up a Self-Managed Super Fund – What You Need to Know (PDF); and Running a Self-Managed Super Fund – Your Role and Responsibilities as a Trustee (PDF).

A key consideration is to determine whether the setting up of a SMSF is the correct approach given your personal circumstances. As the long-time superannuation saying goes, self-managed super is not for everyone.

And that concludes the column

A peak time for would-be SMSF trustees

from Robin Bowerman,  Principal, Corporate Affairs & Market Development at index fund manager Vanguard Investments Australia

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Please remember that advice in this podcast represents a general view. It is recommended that you seek specific financial advice, before making investment decisions.