The majority of us dream of the day we pack in work for good - especially if that retirement also means we have a guaranteed income for life. To some this is an unattainable dream, but it can happen if we take the proper steps beforehand. What do we have to do to make the dream a reality?
Investing in managed funds can be the answer. You don't need a lot of money to invest in a managed fund. Some let you start with as little as $1000, others prefer twice that amount. In today's economic climate, nearly everyone can save that. Even those who have no job can find ways to save a little at a time until they have the necessary amount. So what if it takes a whole year - or even two?
With a managed fund, investors pool their money and the fund manager invests it for them. This is the easiest and simplest way anyone can start to save for their retirement. The profits from the initial investment must be ploughed back into the fund of course, otherwise it will all be spent on present needs or wants. But after a lifetime of re-investing the profits there will be a significant amount to retire on. And those who are wise enough to see the benefits will continue to save for investment purposes so that the initial deposit will swell a great deal over time.
The responsibilities of a trustee are many. There are strict guidelines that you must comply with and failure will bring down the wrath of the tax office upon your head. You must lodge both an income tax return and a superannuation fund return on an annual basis. As well, there must be superannuation member contribution statements lodged every year. An approved auditor must be appointed to do an audit annually. And records must be kept for ten years. There are also restrictions on investments that must be complied with.
In fact, many people feel that the amount of work involved is not worth the benefit and so go with managed funds. Unless you have experience and plenty of time, this is a good decision.