“Don’t be into trends.
Don’t make fashion own you,
but you decide what you are.”
Gianni Versace


SMSF – Fashion statement or a real benefit?

Some investors choose the Self-Managed Super Fund (SMSF) as a preferred vehicle in order to grow their retirement benefit.

This is mainly due to:
  • Perceived ability of a greater control
  • Diverse investment choice
  • Asset security
  • Taxation benefits
  • Estate Planning benefits
  • Limited borrowings
But, this is not an investment option for all due to many disadvantages:
  • Costs – for funds with low balances
  • Trustee obligations
  • Administration and compliance
  • Overseas residency
  • Cap breaches
  • Late lodgement penalties
  • Non-compliance issues
  • Complicated compliance regime

For most people I don’t particularly see a big benefit in establishing a SMSF, as the choice of superannuation funds have increased dramatically over the last 10 years as well as choice of investment options provided by many super funds. So in general, if you wish to invest into a portfolio of Australian Shares and diverse Managed Funds, a retail super fund may be an appropriate option for you.

If however your fund is of high value and you wish to make investments into a real estate market or real business property or hold some “exotic” investments, as long as you meet all superannuation rules, then a SMSF may be a viable option for you.

Another big benefit is that you can combine all family members superannuation savings under one roof, providing the family can communicate and agree on investment decisions. If however a family is not in agreement on many issues, this could  end up being a disaster. No money is worth family disputes and disagreements.

A SMSF can be a great vehicle for business owners, who will often establish the fund in order to purchase their business premises and pay the ongoing rent to their own superannuation fund.

As this is a very complex area that requires ongoing administrative and investment management, it is recommended to contact me directly should you wish to discuss if a SMSF is right for you.


 Call me for a chat and remember the first appointment is on me