As the name suggests, this is a super fund you manage yourself, and you can choose the investments and personal insurance within the fund. Instead of putting your super contributions into a retail or industry super fund, you can put the money into your SMSF. A SMSF may not be suitable for everyone as it does involve certain risks and responsibilities.
What to consider with a self-managed super fund
Guardian Group can help with the set up of a self managed super fund. Our team can create diversified investment strategies and help manage the ongoing obligations of running a SMSF. If you are interested in a self managed super fund, you should speak to one of our professional financial advisers.
There is a lot to consider before taking on your own super fund. A SMSF gives you control and access to a broader range of investments. However, one important consideration is the cost. Setting up and managing your SMSF can be high. From a statistical overview report by the Australian Taxation Office in 2019, the average operating cost of running an SMSF was $6,450, and this did not include costs for investment expenses and personal insurance premiums.
Due to the higher cost of having a SMSF, it is best practise to have a healthy super balance to begin with to make this option viable. Managing a SMSF will also take time and knowledge. Our professional team can help you consider if this is a suitable option and understand the different investment options available to build a healthy, diversified portfolio. We can work with you to create an investment strategy that meets your risk-tolerance profile and retirement needs but importantly make sure you comply with tax, regulations, laws and set up suitable personal insurance policies for the SMSF members.Contact us to help set up your SMSF
Responsibilities of having an SMSF
You should only set up a SMSF if you 100% understand what’s involved. Our financial advisers can help you decide if this is suitable to your personal circumstance and objectives. The responsibilities of having a SMSF do come with risk and must comply with the law. You should be aware that all members are responsible for all the SMSF decisions, even where you have gained help from a professional. There can also be risks that the investments you choose may not have the returns you expect. The Australian Taxation Office (ATO) explain your responsibilities in the following video.
For more information we recommend you consult a professional financial adviser or visit www.ato.gov.au/smsf