You may think an SMSF is right for you - but some things you have heard about SMSFs might be more myth than fact. Let’s take a look at some common reasons for starting an SMSF – and what the reality is!
Your individual circumstances are relevant in deciding whether an SMSF suits you or not. Just because your friends have one doesn’t mean it’s right for you.
There are set up fees for an SMSF as well as ongoing expenses.
These costs can quickly add up and may make an SMSF more expensive than other funds.
There are lots of rules on what an SMSF can and can’t invest in.
If you get it wrong there are serious consequences for you and your fund.
You are responsible for the investment decisions, so if you don’t have a good understanding of financial investments your super returns may suffer. You also need to factor in investment costs.
You need time, interest and the capability to run your SMSF successfully.
Ongoing tasks can be a lot of work and you need to keep up to date with super laws. If your fund gets something wrong there can be serious consequences.
It might be great when you start – but a breakdown in a relationship can have a huge impact on an SMSF. Members can’t be forced to leave or stay in an SMSF, so you need to have workable relationships with all members.
Consider speaking to AGC, the SMSF professionals to see if it is right for you. AGC Advisory are well capable of offering accounting support for self managed super funds.
We provide a full range of SMSF services covering SMSF set up; individual or corporate trustee; update to SMSF; SMSF investment strategy; SMSF change of trustee; SMSF minutes & resolutions package or SMSF borrowing.
For more SMSF information contact an AGC Advisor through our contact page.
Adapted: ATO Website