Is Self Managed Super right for you?

Self managed super funds (SMSFs) are the largest and fastest growing super sector in Australia and for many good reasons. But before you start an SMSF, it’s important to weigh up both the advantages and disadvantages and consider seeking advice to determine whether an SMSF is right for you.

Craig at HQB Financial Solutions is accredited to provide advice in this area. Craig welcomes a chat to help determine if SMSF is suitable for your personal situation. Contact Craig here.

The advantages

SMSFs can offer a number of features and benefits generally not available with other super options.

More investment control – You can establish your own investment strategy and directly control where and how your super is invested.

More investment choice – You can select from a wider range of investments including all listed shares, some unlisted shares, residential and business property, and collectables such as artwork, stamps and coins.

One fund for the family – You can set up a Self Managed Super fund for yourself and up to three other people and consolidate your super balances. This could enable you to invest in assets of higher value than if you set up a fund with fewer members, achieve greater estate planning flexibility, and reduce fund costs.

The disadvantages

While an SMSF can offer greater opportunities to take control of your retirement savings, there are some potential disadvantages you should also consider.

Higher costs for lower balances – SMSFs generally only become cost-effective if the fund has $200,000 or more invested. This is particularly true where you outsource and pay for most or all of the fund administration.

Greater responsibility – When you set up an SMSF, you and any other fund members will generally need to be trustees (or directors of the corporate trustee) and will be responsible for meeting a range of legal and other obligations.

Continue to the full article Is SMSF right for you