Should you be careful in establishing Self-Managed Superannuation Funds (SMSF’s)?

It is said that many Australians set up SMSF’s that are inappropriate for their situation.

There have been speculations that this type of investment may not be beneficial for people who do not have large superannuation balances. This is not necessarily the case as it is not always based on your superannuation balance.

There are many things you need to consider before making this statement. You can determine whether a SMSF will be beneficial for your or not by analysing your financial goals and the type of risk you are willing to take with your assets to get your desired outcome.

If you are wanting to have more control of your superannuation and want to be able to choose how your superannuation is invested, then a SMSF may be exactly what you want. It comes down to what YOU want and what YOUR priorities are.

SMSFs allow multiple members to run a mixture of accumulation and pension accounts. You’ll be able to adjust your investment mix as it suits you, allowing for a fast response to changes in market conditions, super rules or personal circumstances.

If you want to consider bigger investments such as property, you can create a SMSF with family or friends to achieve the investment that you have your heart set on if your balance is lower than approximately $200,000.

On average, SMSF trustees are said to spend more than 100 hours a year managing their SMSF. This could be a red flag for many. This is not the case with FAA as we have a very skilled administration team that manages the majority of this work for you.

We can help you make informed decisions about your superannuation as well as assist you with managing these investments in the years to come.

Avoid the worry about whether this is a beneficial investment for you or not and come and speak to one of our Financial Advisers to see if a Self-Managed Super Fund could be an option for you.