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How to Safeguard your Self Managed Super Fund Nest Egg


Most mum and dad investors with their own self managed super fund think their accountant’s or financial planner’s advice is enough to protect their nest egg, but it isn’t.
Self Managed Superannuation Fund (SMSF) expert, Monica Rule, said investors must have some basic knowledge of superannuation law to protect their financial futures.
“Most of us take for granted that the advice from our accountant or financial planner is correct, but sometimes the advice given is wrong, ” said Mrs Rule.
“Accountants and financial planners have excellent general knowledge of accounting and investing, but their SMSF specialist knowledge can sometimes be limited,” she said.
“I have seen people lose half their assets because they acted on poor advice.”
“Even if the trustee’s adviser has good SMSF knowledge, we should have some understanding of the law as we are ultimately responsible for administering our super fund.”
Mrs Rule said the biggest stumbling blocks for people with self managed super funds are:

  •  Setting up wrong SMSF structures:  It’s important to get the structure right under either individual trustees or corporate trustee with a maximum of no more than four people.
  • Using the SMSF’s bank account as their own personal bank account:  Investors need to take a professional approach to their super account and not see it as an unlimited cash reserve.
  •  Entering into investments with relatives: This could be a recipe for disaster in the event of family feuds.
  •  Lending SMSF’s money to themselves or their relatives: It is not allowed as it puts the SMSF’s assets at risk.
  •  Buying personal use assets such as artwork, jewellery or wine: The SMSF is there for future benefit and not for your current enjoyment.
  • Entering into borrowing illegal arrangements: This allows the lenders to make claims over SMSF assets ahead of members.

“Many people are attracted to SMSFs because they offer flexibility and control,” said Mrs Rule.
“But they can easily get caught out by not understanding the laws around how they ought to be managed.”
Mrs Rule was so frustrated by the lack of knowledge and easy to understand information available that she wrote a book on the topic while she was as an employee with the Australian Tax Office (ATO).
The Self Managed Super Handbook provides information about all areas of the superannuation law in plain English and makes specific references to ATO publications.
“People needed a quick reference guide in plain English to help them understand superannuation law, so they can comply with their obligations.”
The Self Managed Super Handbook can be purchased online purchase for $59.95 through
To find out more about Mrs Rule, visit
Monica Rule Background
Based in Perth, Monica Rule worked for the Australian Taxation Office (ATO) for the past 28 years, 17 of those years were in the Superannuation area of the ATO.
She was an executive level senior technical adviser, trainer and compliance officer. 
Monica holds a diploma in Superannuation and is an SMSF Professionals Association of Australia accredited SMSF Specialist Adviser.


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