In short, it is a private superannuation fund, regulated by the Australian Taxation Office (ATO) that you manage yourself. SMSF’s sole purpose is to provide for your retirement and runs under similar rules of an ordinary super fund however you are personally liable for all the decisions made by the fund even if you get help from a professional, or another member makes that particular decision. Check out some of our latest articles regarding Superannuation for more information.
If you like being in the driver’s seat and want more flexibility than a conventional super fund, managing your own super may be an attractive option. There three main questions you should be asking yourself regarding whether or not SMSF is for you:
Cost comparison with industry and retail funds
Less than $100,000
Unlikely to be competitive
$100,000 to $200,000
May be competitive provided administration and investment costs are minimised
$200,000 to $500,000
May be equally competitive
More than $500,000
May be more competitive
In addition to administration costs and transaction costs, there is a set up fee and some ongoing regulatory charges.
As a general rule of thumb, if your expected annual costs are less than 2% of your super balance then an SMSF may be worthwhile
It will depend on what type of investor you are and how active you are when managing your SMSF investment portfolio. Having Suttie Financial Group run and set up your SMSF will reduce your personal time load, ensure accuracy and feel reassured knowing you are getting optimal advice on where you can and can’t invest.
It is important to understand that as the trustee of your SMSF you are responsible, and will be held accountable, for the compliance of your SMSF with the rules and regulations. You may delegate the duties, but not the responsibilities.
With our end-to-end SMSF service, we’ll look after the paperwork to set up your SMSF, its bank account and investment platform – so you can focus on making your first investment with confidence. The areas we look at include:
This web page contains general advice only. It was prepared without taking into account your objectives, financial situation or needs. You should talk to a financial planner before making a financial decision.
SFG Financial Services Pty Ltd is a Corporate Authorised Representative (No. 473533) of InterPrac Financial Planning Pty Ltd (AFSL no. 246638)