Thinking of running a Self Managed Super Fund (SMSF) …?
Self Managed Super Fund, SMSF
A SMSF is a small superannuation fund that is set up, controlled and administered by the members themselves.
Even though SMSF are a regulated superannuation fund many people establish a SMSF for the benefits of cost and more significantly, control.
SMSF can be cost effective for larger funds depending on how they are run by the trustee. However, members must consider establishment, ongoing operating and investments costs when considering a SMSF.
Probably the main reason why people use a self managed superannuation fund is the control factor. SMSF allow members, as trustees of the fund, to control over the investments of the fund. This allows them to invest in most mainstream options but also other asset classes such as direct property and also consider strategies such as borrowing to invest with the fund.
Members also need to be diligent when running the fund as there can be significant penalties for not meeting the required compliance requirements.
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