Hi
I am looking for advice on moving from Super to individual SMSF. Seems to give more flexibility in the assets one can invest in, like sahres, etfs etc.
Pros and Cons etc. Any recommendations on brokers etc.
Would appreciate if you guys can share your experiences as well.
Thanks and Regards
Thank you for sharing the link
SMSF has allot of regulations and as such speak with your accountant to see if it is worth doing for your situation.
Looking for Advice on Individual SMSF
Then contact your accountant or financial advisor.
can share your expereiences as well.
My experience is that if you spell correctly, people treat you with more respect.
c_o_r_r_e_c_t_l_y.
Have corrected it. thank you 😊
I have used www.esuperfund.com.au for 10+ years for a SMSF. There is lots of information on their site.
Runnings costs are approximately around $1350 a year, plus a bit of your time for accounting. You need a reasonable super balance to justify this expense. I wouldn't say you need $500k, but work out the cost vs super balance to calculate the % fee. A $135,000 balance with a $1350 fee is 1% etc.
Running a SMSF is ok if you know how to follow the rules regarding contributions, investments etc.
You also need to categorise each transaction on the bank accounts each year, and upload some information which doesn't auto populate etc.
If this all sounds too hard, look around for a super fund that allows individual share selection and ETF investments.
Australian super has member direct an alternative to SMSFs shares, term deposits, etfs the cash account is currently paying 3.25%. All this without the hassle of managing a SMSF, tax returns, auditing & penalties for mistakes. They have fees but it's cheaper than doing it yourself.
I'd say one of the issues with some SMSF;s isn't the contribution side of things, however it is the withdrawals.
Have seen quite a few new clients bring our firm their SMSF's with illegal withdrawals. One had even opened the SMSF just to get at the funds. That did not go down well with the ATO.
I wouldn't unless you are savvy with investing, in which case you wouldn't be asking here, or have a particular need that the public funds can't satisfy (such as a burning desire to building your own property portfolio). By all means consult your accountant and/or financial advisors, but understand they they probably have a vested interest in encouraging you to start a SMSF. So do property spruikers.
As ever, it depends upon what you are trying to achieve.
If you are simply after direct shareholdings in large to mid cap stocks and ETFs (in addition to "normal" superannuation investments), I would simply look for a public offer fund that provides this functionality (there are several out there that facilitate this). Save yourself the cost and hassle of running an SMSF.
For most people, an SMSF is only of real value if they want (and have sufficient assets) to hold direct property investments. Beyond that, you've got to have relatively specific investment requirements to need to go beyond what a public offer fund can provide.
Industry funds have access to investments in shares both Aus and international, ETFs, listed and unlisted investments etc, some of which a small SMSF does not have access to. If you think you have the knowledge and experience to beat an experienced professional at the game, and you're happy keeping up with the compliance aspect of an SMSF, then by all means go for it. I think the only advantage an SMSF has is the ability to invest in real estate directly, with no capital gains tax if the SMSF sells after you reach retirement age.
But don't be the guy I saw who opened an SMSF and transferred his industry fund - all $515k of it - into the SMSF's cash management account, then left it sitting there for 18 months while he decided what to buy. Don't be that guy.
Thank you all for sharing your insights.
I currently have less than 500k. I have decent experience in investing in shares and etfs. Have made some good returns in long term investing and swing trading.
While looking for information, I recently came across smsf offered by stake and it prompted me to think if this would be worthwhile.
If you have less than $500K, the admin costs generally outweigh the benefits from getting to do what you want:
https://asic.gov.au/regulatory-resources/financial-services/…