Self-Managed Super funds (known as SMSF’s) are a hot topic right now.
Tax Office figures show that at the end of June 2015, there were an estimated 557,000 SMSFs – an increase of about 50,000 funds in the past 2 years!
There are some great reasons to start your own super fund. Having direct control of your nest egg and being able to invest in the way you choose are all common reasons for considering an SMSF.
Be aware though, SMSFs comes with big responsibilities. Not only is the quality of your retirement at stake, but there are also significant legal issues to address, and good tax planning and estate planning are essential.
Your accountant and financial planner can help with these matters, however, when you’re a member of an SMSF, you’re also a trustee of the fund and that means YOU are responsible when it comes to complying with superannuation regulations – and also earning a decent return.
That’s why the decision to start up an SMSF needs proper consideration. Before committing to anything, take a moment to think about you and your plans.
How much do you know about super and investing?
Are you willing to take on greater responsibility for greater control?
Do you have enough funds to start (generally a minimum of $250,000 in super).
Do you have the time to administer the fund?