setting up a Self-Managed Superannuation Fund (SMSF)

A lot of our clients are fed up with the less that impressive returns from their superannuation funds. A self-managed superannuation fund (SMSF) allows the members to control what the fund invests in, this can include residential or commercial property.  Some of our business clients use their SMSF to purchase the premises from which they operate their business.

We believe some of the advantages are:

  • control over one of your largest assets (after the family home superannuation is usally peoples next largest asset)
  • wider variety of investment choices – most employer superannuation funds cannot investment in investments such as residential and commerical property

We believe some of the disadvantages are:

  • You have more responsibilites to ensure your SMSF is compliant and lodges it’s tax returns on time etc.
  • You need to have sufficient funds in your SMSF to make the costs of running the fund worthwhile (you can pool superannuation funds with upto 3 other people)
  • As trustees you have to ensure that the fund invests in line with it’s investment strategy

These are areas that we work closely with our clients on.

What do you see are some of the advantages and disadvantages of running your own superannuation fund ?

Have you considered setting up your own SMSF ?