Self Managed Super Funds - Price Financial Intelligence

Self Managed Super Funds (SMSF)

Is a SMSF right for you?

Self-Managed Super Funds are not for everyone, however they are very well suited to people who seek control over their investment selections and are passionate about growing their superannuation for retirement.

There are rules, like the sole purpose test, however it is not difficult to comply with these rules.

You will have the freedom to choose your own investments including listed securities or if you wish your fund may invest in a residential investment property, which is let out to an arm’s length tenant or even a commercial property where you operate your business.

How much does a SMSF cost?

FROM $2,000 — $3,000

set-up cost

depending on your selected investment objectives and your need for a corporate trustee and/or a separate trust to hold your investment property.

The costs of running an SMSF generally start at $2,500 per annum or more depending on the level of the activities undertaken within the fund.

FROM $2,500 up to as high as $5,000+

Complex SMSF Fees

where you operate a number of investment strategies including an SMSF which undertakes the purchase of an investment property using a limited recourse borrowing facility to secure the investment.

As a guide our average fees are in a range of between $2,500 and $4,000 per annum.

How does this compare to my existing super?

Most industry/retail super funds charge fees for running your fund, plus fees for your investment choices and if applicable, plus adviser fees as agreed with your financial adviser.

These fees range from 1% to 2% depending on your fund.

If we take a midpoint of 1.5% and you have $200,000 in your members account, then your existing fee is about $3,000 per annum. You should determine this amount from your existing fund, if costs are an important consideration for you.

What is the difference between running my own SMSF and remaining in my existing Super Fund?

The fees on your existing super will increase as your fund balance increases, whereas the fees on your SMSF only increase based on your activity within your fund.

For example your fees for your SMSF with a fund balance of $200,000 will be similar as your fees for a fund balance of $500,000 as these fees are based on the time taken to prepare the SMSF accounts and are not based on the assets in the SMSF.

Should you require any further information or have questions you would like answered please feel free to call either William or Wayne directly on (02) 9875 2444.

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