Self managed super

[mugoftea]

Not sure if this it the right forum for this topic, but would appreciate any thoughts on this matter.

My husband wants to setup a self managed super fund (with both of us as members) for greater control over our super investments.

We are both in our early thirties, personally I feel that the time required to manage the fund and its compliance vs its return /benefits is not worth it at this point in our lives.

Any thoughts? What are the real benefits of having a self managed super?
Most people that I am aware of with SMSF are retirees or close to with much larger accumulated supers.

 

[sanj]

Not sure if this it the right forum for this topic, but would appreciate any thoughts on this matter.

My husband wants to setup a self managed super fund (with both of us as members) for greater control over our super investments.

We are both in our early thirties, personally I feel that the time required to manage the fund and its compliance vs its return /benefits is not worth it at this point in our lives.

Any thoughts? What are the real benefits of having a self managed super?
Most people that I am aware of with SMSF are retirees or close to.

im 33 this year and have a smsf, albeit with my parents and younger brother as members too. i think it's great but not for everyone, speak to an adviser/planner who knows the ins and outs, find out more about not only the benefits but the responsibilites and whats involved and then make an informed decision.

 

[redwing]

We are both in our early thirties, personally I feel that the time required to manage the fund and its compliance vs its return /benefits is not worth it at this point in our lives.

.

How much time do you think is taken up managing a SMSF ? And what costs would you be looking at ?

 

[mugoftea]

Time, I think would depend on your investment strategy. Plus there is the annual compliance work required with your smsf accountant.

But there are tax and legal responsibilities that would obviously take time to understand ensure the smsf is compliant.

With regards to cost, as far as i am aware there is an annual fee of around $700, plus a tax levy to ATO of about $500..

 

[Terry_w]

There are real financial and estate planning advantages with a SMSF. But you need to weigh up the costs and compliance. SMSF are very complex.

There is a recent case where a lawyer stuffed by his BDBN and he lost control of his death benefits. All because he named the beneficiary correctly - he went to his accountant for legal advice!

 

[Paul@PFI]

Self Managed Super may be ideal for some people and some people with sufficient balances and strategies. The smaller the balance the greater the problems.

The starting point is knowledge. Many people think they can manage their own super but they are not experienced, qualified or lack knowledge on what running a SMSF involves. The costs and poor returns you may see now may be better than a SMSF can attain.

The ATO have some excellent free info. https://www.ato.gov.au/Super/Self-managed-super-funds/

At ages under 40 its rare to find suitable balances that support a SMSF.

 

[Rob G.]

Simply cash and direct shares few hundred k

Five minutes a month.

About two hours at end of year.

ATO + auditor fees approx $750 regardless of super balance

About five times cheaper than a supposedly low cost industry fund even after you turn off all the 'optional value adding services' they offer (get you with).

If you are just going to start an SMSF and the outsource all the management then all you have is a high fee boutique investment fund.

Why not go to evening classes to learn a bit about accounting & personal investment ? It is an investnment in yourself.

 

[Paul@PFI]

Simply cash and direct shares few hundred k

Five minutes a month.

About two hours at end of year.

ATO + auditor fees approx $750 regardless of super balance

About five times cheaper than a supposedly low cost industry fund even after you turn off all the 'optional value adding services' they offer (get you with).

If you are just going to start an SMSF and the outsource all the management then all you have is a high fee boutique investment fund.

Why not go to evening classes to learn a bit about accounting & personal investment ? It is an investnment in yourself.

Features and Benefits. What will the auditor audit ?? Financials and tax come at a cost too. ASIC fees. Agree that SMSFs offer a capped cost and its virtually same for $100K and $1m. No mention of loss of insurances, risks (loss of prudential protection is a major concern) and s52 SISA requirement to formulate an investment strategy and consider insurances. What do you then invest in ?...Do what many do. Cash ? They go backward being cautious or go backward not understanding risk. Don't understand franking credits ? Pension strategies, estate planning, death benefits !! etc ....

DIY super is slightly akin to DIY dentistry. No law prevents either. Pain receptors stop people doing their own teeth fortunately.

 

[redwing]

Here's an example of pricing, I'm sure there are others even cheaper ESuper etc

SuperPlus pricing