The trustees have the power to make the funds investments decisions to benefits to members.

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1 What is an SMSF? A Self Managed Superannuation Fund (SMSF) is a special type of trust designed for the sole purpose of providing a greater degree of control and flexibility. This is especially important when it comes to tailoring your super fund to meet your retirement needs, now and in the future. THE WAY IT WORKS AND HOW IT DIFFERS FROM OTHER SUPER FUNDS An SMSF has up up to to four four members members who are who the are trustees. the trustees. The trustees have the power to make the funds investments decisions to benefits to members. They also have the responsibilities for the funds ongoing maangement and compliance with law. The ATO regulates SMSFs and if set up properly, an SMSF may be eligible by tax concessions. You can roll most existing superannuation savings into your SMSF and they accept most type of contributions, including those paid by your employer. Like any super funds, it is subject to strict conditions of release for a member to access to the benefits. THERE ARE MANY ADVANTAGES OF AN SMSF, INCLUDING: Broader Choice Greater Control More Freedom You can choose from an extensive range of assets and investments to grow your retirement savings that may not be available in other super funds, including direct equities and fixed interest, investments properties and in-specie assets. You are in charge and have unique control of the investment strategy and management of your fund s assets. You have flexibility to make changes quicly and easily to meet your needs and those of the members both before and after retirement. An SMSF allows you to combine an assets of up to four members into a single fund and with it s unlimited lifespan, may continue to provide benefits to members well into the future. They also provide additional flexibility to tailor an insurance solution for your members beyond what other funds may offer. Regardless of how appealing it sounds to be in control of your own fund, an SMSF comes with additional complexity and compliance requirements which makesdoing it yourself extremely challenging. To fully reap the benefits of an SMSF,it is prudent to seek professional advice and assistance from Direct My Wealth who specialise in the establishment, management and administration of SMSFs. Superannuation is your investment in how you want to live during your retirement. getting the right advice can make a significant difference.

2 Setting up your SMSF At Direct My Wealth we take the hard work out of setting up your SMSF and take you through a simple 10 step process to get you up and running as soon as possible. 1 ESTABLISH CORPORATE TRUSTEE ENTITY FOR YOUR SMSF Corporate Trustee documents and ASIC application 6 REGISTER YOUR TFN AND ABN ESTABLISH THE TRUST DEED OPEN A BANK ACCOUNT 2 A legal document that covers how to establish and run a SMSF. 7 This is purely for the use of the SMSF and is separate from your personal or business accounts Documents will be ed to you for authorisation. BECOME REGULATED ROLLOVER EXISTING FUNDS 3 Lodgement to become a regulated Superannuation Fund 8 Add any existing superannuation savings to your SMSF Forms ed to you for execution and sent to Direct My Wealth once ABN is received from ATO. NOTICE OF CONSENT RE-DIRECTING CONTRIBUTIONS 4 Required to allow you to act as a trustee 9 So your employer can make contributions to your SMSF Forms and documents prepared by Direct My Wealth for you to forward to your payroll office. 5 SIGN THE DOCUMENTS This includes the Trust Deed and other required documentation (this will be ed to you for execution) 10 PROCEED WITH INVESTMENT SELECTION Develop investment strategy based on chosen investment, Direct My Wealth can provide guidance if required.

3 Putting the enjoyment into running your SMSF Many dreams about the day they can retire and set back and enjoy the rewards of their lifetime of hard work. And right now, everyone is associating this dream with having their own Self Managed Superannuation Fund. Who doesn t want to be in the drivers of their retirement savings? The problem is most people don t understand the complixity, compliance and administrative requirements involved in setting up and running an SMSF. getting it right requires a significant investment of time, knowledge and expertise. If youdon t have all the three, then doing it yourself could become your biggest nightmare and there could be serious consequences for you and your fund. YOUR IDEAL PARTNER WHEN IT COMES TO SMSF s YOUR ADVISER LEADING THE WAY MATT SPENCER For over 12 years, Direct My Wealth has helped thousands of forward-thinking Australians set up and manage their own SMSF and allow them to enjoy the many benefits an SMSF can offer. We know exactly what needs to be done to make the process as easy as possible for you. Matt Spencer knows SMSFs inside. Since 2004 he has been working and studying in the financial services industry, providing superannuation and personal insurance advice to help his clients realise their lifestyle and financial dreams. With a degree in business and management, and several financial industry diplomas he is well qualified to help you make the best use of your hard earned money and to keep it for the long haul. We ll deal with all the paperwork, liaise with the ATO and provide the advice and hands on assistance so you and your SMSF can hit the ground running. You ll need to sign a few documents and make some big decisions, but we ll be here guiding you and taking care of all the granular details. If you are looking for a partner to provide you with a range of solutions to boost your retirement savings, including the establishment, management and administration of SelfManaged Superannuation Funds, you are in the right place. Direct My Wealth Suite 47, 574 Plummer Street Port Melbourne VIC 3207 Phone: matt@directmywealth.com.au Direct My Wealth holds an Australian Financial Services License: AFSL

4 Common Questions Surrounding SMSF. WHEN CAN I ACCESS MY FUNDS? The most common condition of release for paying benefits are when a member are: has reached their preservation age and retires. has reach their preservation age and begins a transition-to-retirement income stream. is 65 years of age 9even if they haven t retired). passes away. WHAT IS THE PROCESS FOR MAKING AN INVESTMENT IN MY SMSF? The following 5 steps should be carefully reviewed and followed when making an investment to ensure that your SMSF complies with all Super laws. Step 1: Review if the investment is allowed Step 2: Confirm the investment adheres to the funds investment strategy. Step 3: Place the investment from the transaction bank account Step 4: Document the investments Step 5: Document the annual Investment review. WHAT IS AN INVESTMENT STRATEGY AND DO I NEED ONE? Yes, an SMSF is required under Super Laws to have an investment strategy. An Investment Strategy setsout how you plan to achieve the funds objectives (increase the members retirement benefits) and to guide your investment decisions around making, holding and realising the funds assets. It must reflect the circumstances and needs of the members and be reviewd on a regular basis. You are also required to consider whether to hold insurance cover for one or more members of your SMSF. WHAT ARE THE ANNUAL COMPLIANCE REQUIREMENTS? It is a compliance requirement that the following documents are prepared and lodged by an SMSF on an annual basis. They include: Balance Sheet Profit & Loss statement Members Statement Trustee resolutions & Minutes Income Tax Return Audit Lodgement of the Annual Income Tax Return We can Liaise with your preferred accountant to facilitate the preparation of these documents on behalf of your SMSF.

5 WHAT ARE MY OPTIONS FOR APPOINTING TRUSTEES OF MY SMSF? An individual trustee When you set up your SMSF, you need to decide whether your funds has individual trustee s; or a company, as the trustee. The trustees of an SMSF control the fund and all the assets are recorded in all trustees names. Therefore you need to fully understand the structure that is more appropriate and caters for your needs, now and in the future. With individual trustees, all membersof the funds must be trustees and anyone over 18 can be a trustee. There needs to be atleast two individual trustees (If you are the only member of the fund, you will need someone else who is willing to be a trustee and not a member) and a maximum of four. A corporate trustee This is where a company acts as the trustee, in which case all members must be directors of the company. If you a corporate trustee, you can be a single member of the fund and the sole director of the company. If you do not already have a company, you will need to have one set up costs under $500 as a once off set up fee with a $44 annual ASIC fee. WHAT ARE THE BENEFITS OF USING A COMPANY AS A TRUSTEE? We recommend you appoint a Company as a trustee rather than individuals for the following reasons: Protect your personal assets As companies are subject to limited liability, a corporate trustee will provide greater protection where a party sues the trustee for damages as it reduces the riskof personal assets becoming intermingled with fund assets. A one member fund If you want to be the only member of your SMSF, the only way you can do this is to have a Company as the trustee. You can be the sole director and shareholder of the company, which therfore gives you complete control of the fund. More future certainty With a corporate trustee, ongoing control of the SMSF and its assets is more certain as a company can continue to be the trustee even in the event of a members leaving, incapacity or passing. if individual trustees are in control, the fund can not operate if there is only one trustee left.