Self managed super funds

I'm thinking about a SMSF

Jim and Julie are in their early 40’s and own a very successful café. They have been interested in the stock market and have done some research but are not one hundred percent confident in investing personally. In their Super, they have managed to save the recommended $500,000 that allows them to set up an SMSF. Instead of continuing with a retail super fund, they are keen to establish an SMSF and be more involved with the investment choices of their own fund. Jim and Julie have also researched and understood the fees associated with running a SMSF include accountancy fees, ASIC fees and audit fees.

Jim and Julie approach their accountant to establish the trust structures and bank accounts for the SMSF. At the same time, they have been talking to Super Equity about their investment strategy for their Fund. While Jim and Julie remain the Trustees of their own SMSF and are ultimately responsible for the decision making, Super Equity are able to provide investment and financial advice to support them. Being experienced stockbrokers, Super Equity does all the research and helps to decide the best mix of investments to suit Jim and Julie’s retirement goals.

Keeping on top of the forever changing economic landscape can be a difficult task, so Jim and Julie are working closely with Super Equity who will guide and advise them on the investments that are best suited to them.

Follow this link to read more about the details of Personal Super Solutions including SMSF.

SMSF Administrative Costs and Requirements

Self Managed Super Funds (SMSF) can provide a lot of financial benefits but they're not for everyone. Most people consider a SMSF when they want to take control of their super or feel that they could invest their retirement savings better than a managed fund. While a SMSF can give you that independence from managed funds, it is important to remember that it comes with a great deal of administrative requirements.

An SMSF is essentially a Trust that requires legal tax structures to be put into place – including the appointment of an individual or a corporate trustee. The choice of structure will have an impact on the membership requirements, the establishment and ongoing costs involved, asset ownership, penalties for non-compliance and entity succession in the event of death.

If you have less than $200,000 to invest, the costs associated with running the fund can significantly impact what you earn from your investment. If you’re on a modest salary, then Personal Super is a much better option.

NOTE: Any advice or information in this article is of a general nature only and has not taken into account your personal circumstances, needs or objectives, therefore, before acting on the advice, you should consider its appropriateness to you, having regard to your objectives, financial situation or needs.

How much super do I need to set up an SMSF?

While there is not a minimum requirement for setting up an SMSF, the establishment costs and ongoing fees will play a big part in deciding whether your you have enough superannuation to use a Self-Managed Super Fund setup. Organisations such as the Australian Securities and Investments Commission (ASIC), recommend that SMSFs are more competitive for super funds with balances above $500,000. Many have taken this as a starting point for choosing an SMSF, the important thing to consider is the costs and investment strategy that will make this structure a beneficial one for your retirement savings.

If your fund doesn't have enough cash or isn't managed properly, your net position in retirement can be seriously impacted.

If you're not quite sure where to start, or you have questions about SMSFs, get in touch with us and one of our advisers can talk you through your options.

SMSF Resources - Further Reading

For more information on Self Managed Super Funds review these resources:

Stephen Hall

September 21, 2023.

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jeff allott

June 22, 2023.

Sound knowledgeable and friendly service with advise tailored to my requirements

Natalie Gaby

January 12, 2023.

I highly recommend Super Equity to anyone needing assistance or guidance with their Super. Tracy was very thorough and clearly explained how Super works and why she made particular recommendations for us. Her (and the team's) customer service is outstanding with being very personalised, and we look forward to a long working relationship with them.

Charlie Gimblett

August 8, 2022.

A huge thanks To Tracy And Adrian from Super Equity for sharing their knowledge on the recent Introduction To The Stock market Course I attended. The course was fabulous and gave a great insight on how the world operates from Share Markets, to Economic Cycles, World Currencies and great tips on how to look for opportunities on how and where to invest based on local news and world events along with overseas markets and indicators. Also thanks again Adrian for the Silver coin for 1st prize as part of the demo share market game we played over the duration of the course. Would thoroughly recommend the Stock Market course as well Tracy and Adrian's knowledge on our own investments. Cheers Charlie

Leigh P

April 29, 2022.

Tracy has been a pleasure to deal with. Found her very approachable and patient. She is very knowledgeable in super funds and I would highly recommend her to anyone who needs more education on how to make their super work for them.

Lena Diez

February 25, 2022.

My husband and I have had the privilege of receiving the guidance, services and support from Tracy for over 5 years. Having joined Super Equity has been one of the best financial decisions we have made to date. Tracy's extensive experience and knowledge has guided and helped us improve in our financial journey. No question is to silly, Tracy is always available for any query you have and gives us the time to explain our portfolio and investments. Receiving the daily morning reports has been helpful to understand and learn the market. We have always highly recommended and will not hesitate to recommend Tracy and team for any and all financial guidance. Thank you Tracy and look forward to your continual support.

Tessa Daal

October 13, 2016.

Tracy has been an amazing teacher. I have gone from having no idea about what my super was doing and feeling really overwhelmed by the thought of all that it involved, to now being in control and understanding. Through super equity's I have a transparent, easy to understand managed fund. Tracy has even put me into contact with advisors specialised in life insurance and income protection. I cannot thank Tracy enough for empowering me and helping me organise all my affairs. If you need someone patient an knowledgeable to organise your super and investment portfolio, Tracy is the best!!

Dianne Bentley

July 8, 2016.

The service and support received from Super Equity has reached and surpassed all our expectations. Having previous experience with stock brokering firms over an 11 year period has highlighted to me how superior the service and support received from Tracy Askew at Super Equity is. For myself and for my clients. Tracy's in depth fundamental and technical knowledge in all areas of the market reduces many hours of my time in the research needed to be successful and profitable for myself and my clients.