Three things to Consider before Setting up a SMSF
The Top 3 things that I ask a client to think about before setting up a SMSF (Self Managed Superannuation Fund) generally is the first thing; can my current Superfund offer the things that I’m actually after. So for example, shares. A lot of the times, I see clients setting up their SMSF because they want control and the flexibility to buy and sell shares. There are plenty of superfunds that will allow you to do that.
The second question that I ask them is whether or not they are prepared to offer the commitment and time to actually managing the SMSF. There is a lot of cumbersome paperwork and administrative works that come with it.
The last question is usually around the cost. “Am I prepared to pay for this additional flexibility?”. Again, if your current superfund allows you to do it, then you may not need to incur the additional cost. But if you tick all three boxes, then certainly the SMSF may be right for you.