Is a Self-Managed Superannuation Fund the one for you?

Want to know more about Self-Managed Superannuation Funds?

A SMSF (Self-Managed Superannuation Fund) is a possible option for those looking to take greater control and have more flexibility over what they want to invest in. For example, a SMSF can invest in residential or commercial property and even partake in Limited Recourse Borrowing Arrangements (LRBA’s).

Benefits of a SMSF

A benefit of having an SMSF is that you and your spouse and possibly two children can all pool your current funds from superannuation and invest together.

  • This would enable you to save on fees as a family compared to if you were to pay all separate fees in different individual fund accounts.
  • An increased pool of funds may mean together you can now afford to purchase a small commercial property or even residential property, instead of just having separate funds with your only options being based on risk: low risk, balanced, high risk.

What to consider

One consideration when determining if a SMSF is worthwhile to you as an individual is to compare the fees you currently pay in an industry fund with the fees you would pay an accountant to do the annual compliance.

Typically, a SMSF is worth setting up for those with at least $250K in superannuation currently due to the fees charged by an accountant being similar at this point or slightly better than those charged by an industry or retail fund.

Another major consideration of starting an SMSF is the responsibility involved in having one;

  • Annual compliance requirements (annual return lodgements, BAS’ if the fund is registered for GST),
  • Wisely choosing what investments to invest in and what sort of risk you are willing to take with your portfolio and ultimately being able to stay engaged and interested in an SMSF for the long term.

A SMSF is not for everyone as it requires commitment, sufficient funds to be worthwhile and there are quite a few taxation and legal requirements both in initial setup and on an ongoing basis.

However, it can be very rewarding and provide trustees with the independence they want and control over where their superannuation funds are being invested.

If you are interested in a Self-Managed Superannuation Fund or would just like further information, please contact one of our Super Specialists, complete your details below and we’ll be in touch or give us a call on 03 9835 8200.

About the Author
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Denver Byass , Melbourne
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