FINANCIAL PLANNING

Is an SMSF right for me?

Self managed superannuation funds (SMSFs) are an increasingly popular option for investors seeking greater control and flexibility of their superannuation. At the same time, you need to consider the wide–ranging reporting requirements and compliance obligations when deciding if an SMSF is right for you.

SMSF set up

While there is no statutory minimum required to set up an SMSF, you generally need a minimum of $200,000 of assets to make it cost effective. However, cost is only one consideration. Your obligations as an SMSF trustee are extensive.

What you need to know

Before deciding whether an SMSF is right for you it pays to consider the key advantages as well as the drawbacks of an SMSF.

Advantages

• SMSFs provide a greater degree of control and flexibility over your investments, making them suitable for sophisticated investment and retirement strategies
• Increased estate planning and retirement options
• Potential for tax efficiencies

Drawbacks

Establishing and maintaining an SMSF involves:

• Making time to effectively administer the fund and monitor its assets
• Paying the costs of auditing, supervisory levies and day-to-day administration
• Taking on the risk of penalties if the fund fails to comply

Before deciding whether an SMSF is right for you it pays to consider the key advantages as well as the drawbacks of an SMSF.

Count on us

A Count adviser can help you:

• Decide whether an SMSF is the right choice for you
• Boost your super using smart super strategies