SMSFs and Finding an SMSF Advisor
– SERVICING AUSTRALIA –
Finding the right SMSF Advisor can be a difficult challenge so it is important to be well educated in what to look for. Whether starting young or thinking about retirement options, Collins Mann SMSF advisors work with you to make well considered decisions to suit your specific needs.
A self-managed super fund (SMSF) is exactly what the name would suggest: a personal super fund that is managed by the members of the fund rather than an institution. In this respect, SMSFs differ from industry and commercial super funds.
When you are in control of your super account, you’re able to distribute and use the money that would usually be entrusted to a commercial or industry super fund in your personal SMSF. In short, it is you who decides what to invest in and what insurance to consider.
A personal SMSF is eligible to have up to four members, assuming they are friends or family. It would be unusual for an SMSF to have just one member as they usually serve two or more individuals.
If you are a member, you are a fully-fledged fund trustee (or the director of a private company that you appoint to be the trustee) the responsibility of the fund comes back to you.
Although it is appealing to be in control when it comes to your money and your super, it is important to remember that maintaining an SMSF takes a lot of work and can have some risk associated with it. If you have researched everything that’s involved with establishing your own SMSF and you’re convinced this is the option for you, it might be time to seek out an SMSF advisor.
Every member who belongs to an SMSF is given the responsibility of the fund’s choices in terms of investment and legal compliance. Should anything go wrong or be non-compliant, the blame sits on your shoulders.
The following are some of the responsibilities associated with running an SMSF:
While managing an SMSF can be rewarding, it is also hard work. Whether you seek help from an SMSF advisor or do it yourself, the ongoing management can be considerably time-consuming. You will require enough time to get the SMSF established and stable, as well as the time it takes to look after ongoing activities, including:
On average, it takes SMSF trustees 8 hours a month to manage their fund in a healthy way and to a reasonable standard. That equates to over 100 hours per year.
Additionally, the initial set-up and ongoing management costs have the potential to be significant. These ongoing costs should be kept in mind: investments; finances and bookkeeping; annual audits; advice on tax; legal advice; and financial advice.
A report in 2018 concluded that “the average operating cost of running an SMSF was $6,152”. The median cost was $3,923.
Now that you have heard a little bit about what managing an SMSF will entail and you’re still completely committed to the project, it might be time to think about seeking professional assistance from an SMSF advisor. The team at Collins Mann, based in Brisbane and servicing clients across Australia, have the expertise to make this work for you.
Contact us today to have a chat about how our financial experts can assist you in your journey.
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On average, it takes SMSF trustees 8 hours a month to manage their fund in a healthy way and to a reasonable standard.