Self-managed superannuation funds (SMSFs) are the fastest-growing fund type of super fund in Australia, providing investors with greater flexibility and control over where their super is invested.
However SMSFs are not for everyone. Importantly, it is the responsibility of the members (who also run the SMSF) to ensure that it complies with all of the complex superannuation and tax legislation. The annual costs of running a medium-sized SMSF are estimated at about $2,000, meaning a SMSF is usually not advisable if the fund assets are likely to be less than about $200,000.SMSFs also involve a great deal of paperwork and responsibility on your part to ensure you comply with the regulatory requirements of running your own super fund.
So before switching to an SMSF it’s worth asking:
- Will the benefits be worth the costs?
- What are your motivations to make this change?
- Is the fund strictly for retirement benefits?
- Do you have the time and skills to run your own super fund?
- How will switching affect your current super benefits, insurances, services and fees?
Many SMSF owners choose to outsource some administration functions to reduce the amount of paperwork they need to complete themselves. This could be to an accountant or a specialised SMSF administration service. With greater control comes greater responsibility, but the right financial advice and support can make it easier.
To find out if a self-managed super fund is right for you talk to us today on 07 5355 0979.