Is a Self Managed Super Fund (SMSF) right for you?

Under certain circumstances, SMSFs can offer significant advantages to members, compared with a traditional retail or industry super fund.

These include:

  • Greater flexibility to choose what you’re invested in
  • Tax concessions
  • Ability to create rules for the fund about how it operates
  • A flatter cost structure
  • The ability for your SMSF to continue beyond your death, which can enable funds to be distributed to family members, making it a valuable estate planning tool

However – because of the rules and responsibilities that apply – it’s important to know that an SMSF is not for everyone.

In short, an SMSF may be suitable for you if you have:

  • At least $200,000 in assets to invest
  • Fewer than 5 people whose assets you can pool together in the fund
  • The time, capability and interest to: identify an appropriate investment strategy and monitor its performance; take care of all administrative and reporting requirements; organise rollovers; and accept employer contributions within limits (or be willing to engage an external consultant to do some or all of this work)

Other criteria apply, and we would be happy to discuss these with you.

Our financial advisers can speak with you about your particular circumstances and goals regarding retirement planning. This enables us to appraise whether or not an SMSF offers sufficient advantages for you over other types of superannuation funds or investment vehicles.

If it is, we can assist you in getting your SMSF underway. In doing so, we can ensure your SMSF is compliant. We can also support you in meeting rules and responsibilities that apply, along with your administrative and reporting obligations.

Your SMSF can be arranged as part of a broader wealth management strategy, and in consultation with our tax and accounting, and estate planning specialists.

Contact us to find out more about self managed super funds, and whether a SMSF will be beneficial in your situation.

You may also be interested in our article, 7 Biggest Mistakes to Avoid When Setting Up Your Self Managed Super Fund.