Who is Self-Managed Superfund suitable for?
Deciding to set up and running a self managed superannuation fund SMSF should come with careful consideration. SMSF’s aren't for everyone!
An SMSF is best suited to those people looking to take maximum control over their super assets, who have sufficient superannuation assets to invest and are also willing to accept strict regulatory responsibilities placed on trustees of the SMSF.
As a rule of thumb you shouldn't set up an SMSF unless you have at least $200,000 of superannuation assets across all members. If deciding to set up an SMSF with less than $200,000, you need to consider the ongoing administration costs.
The following table shows the fee comparisons of a self managed super fund to other superannuation options assuming you have $200,000 to invest.
As you can see the fees associated with a self managed super fund can be as low as retail fund options. The reality is that the fees shown above are ‘standard fees’ and payable irrespective of fund size, meaning if you have $100,000 in super then the fees represent a higher %. The above fees also don’t take into account any adviser fees which are payable on your investments.
Fees are just one part of the equation. The other more important part is whether you have the financial knowhow to run a self managed superannuation fund? Can you, at the end of the day run your super better than a fund manager or investment professional? Typically the answer is no however with the right team of people a self managed superannuation fund can be very successful to the members.