Do-It-Yourself Funds (DIY) or Self Managed Superannuation Funds (SMSFs), like all superannuation funds, have been established to provide for retirement. These funds are also established for a small number of individuals (fewer than 5) and regulated by the Australian Taxation Office.

Currently, DIY super funds are now the largest segment of the superannuation industry by value. Around 300,000 super funds are self managed, representing 560,000 Australians managing their own funds.

Self managed superannuation funds comprise more than 20% of the superannuation industry, and the number of funds is growing, with about 2,500 new self managed super funds that are established every month.

Last 31 December 2003, DIY super funds had approximately reached $125 billion in assets under management.

However, an average of 160 self managed super funds has been reported to be closed each month.

DIY super funds are said to be appropriate if you: have $300,000 or more to invest in super, want more or full control over your super investments decisions and flexibility to create your own investment strategy, and have the time and resources to manage your own fund and its investments.

There are rules governing self managed super funds and they are designed to ensure your money is an asset building for your retirement. It’s the role of the Australian Taxation Office to ensure you ‘play by the rules’.

DIY super funds perform the same role as other funds, by investing contributions and making them available to members on retirement. Generally, the difference is that DIY super funds members are also the trustees. They control the investment of their contributions and the payment of their benefits. By having all members as trustees, they are in a position to ensure their interests as members are protected.

Australians are given the opportunity to choose to make extra voluntary contributions to their personal superannuation contributions to an independently managed superannuation fund or to a self managed superannuation fund and receive tax benefits for doing so.

With the financial climate being shaky, Australians who are finding it hard to make ends meet can make use of cash loans to cover DIY super fund costs.

Cash Loans, the solution

As cash loans have easy and not strict eligibility requirements and can be availed any time, and you find it hard to cover the cost of your DIY super funds, then instant cash loans could be a great cash gap remedy. Cash loans are processed quickly and once approved and wired electronically by the lender to your chosen bank account; you can immediately have access to the borrowed cash.

Moreover, with cash loans, it all depends on you on how you will use them.