Self-Managed Superannuation Funds (SMSFs)
SMSFs can be a great tool to complement your business or personal investments.
They’re certainly not for everyone, but in the right circumstances can perform much better than a standard retail or industry super fund. Rather than using a fund manager, through a SMSF you are the one who invests your super balance as you see fit.
Reasons people generally set up SMSFs:
- They think they can achieve a better return than their current super fund.
- They have an interest in investing.
- They want to pool their super assets with their family or friends.
- They want to buy assets (e.g. real property) that aren’t possible in a retail or industry fund.
- They can be cost effective – since the costs of running a SMSF are fairly fixed, the more assets within the fund the cheaper it gets in % terms.
On the flip side, there are some circumstances where SMSFs generally don’t work:
- Where the members don’t have an interest in investing the SMSF assets.
- Where the members don’t have the time to maintain the SMSF.
- Where the total assets of the SMSF are relatively low (e.g. < $100K), it’s more expensive to run in % terms than a retail or industry super fund.
We can assist with the establishment and ongoing administration of your SMSF. Contact us if you’d like to discuss how we might be able to help you.
