What is an SMSF?
What is an SMSF?
Most Australians have their superannuation managed by a large third party, like an industry or retail fund. But a growing number of people in Adelaide are choosing to "be the fund manager" themselves by setting up a Self-Managed Super Fund (SMSF).
How It Works
In a standard fund, you choose a "bucket" (like Balanced or Growth), and the fund manager decides which specific shares or properties to buy. In an SMSF, you decide exactly where every dollar goes. You can buy a specific commercial property, gold, or even artwork (within strict rules).
The Top 3 Reasons to Start an SMSF
Control: You have full transparency over your investments.
Investment Choice: You can access assets that traditional funds don't offer, like your own business premises.
Cost Efficiency: For high balances (over $500,000), an SMSF can actually be cheaper than a percentage-based industry fund, as many of your costs are flat fees.
The Responsibilities
It’s not all freedom and games. As a trustee, you are personally responsible for:
Preparing an annual investment strategy.
Conducting an annual audit.
Lodging tax returns and remaining compliant with the ATO.
Devoting roughly 100 hours a year to managing the fund.
Is It Right for You?
An SMSF is a powerful tool for those with the time, knowledge, and a significant super balance. For those who want control without the paperwork, a "Direct Investment Option" (DIO) in a standard fund can be a good middle ground.
As your advisors, we help you weigh the costs against the benefits to ensure your super is working as hard as you are.
Source: https://www.fool.com.au/investing-education/what-is-an-smsf/
For further information, or to book an appointment to ensure your business/trust affairs are in order, give Humble Goode Financial a call on 08 7477 8252 or email planning@hgfp.com.au
General Advice Warning:The information on this website is intended to be general in nature and is not personal financial product advice. It does not take into account your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant financial product having regard to your objectives, financial situation and needs. In particular, you should seek independent financial advice and read the relevant product disclosure statement (PDS) or other offer document prior to making an investment decision in relation to a financial product.