A self-managed super fund (SMSF) is an excellent option for many individuals, particularly for those who prefer to have greater flexibility and control over their investments and financial future.

With many industry and retail funds delivering average, or below average, performance the enquiry from clients interested in the benefits of a SMSF has been strong, particularly over the last three years.

Self-managed super fund’s are in essence highly personalised super funds as they are quite complex in their structure and are also tailored to suit the specific needs and circumstances of each client. They are definitely not a ‘one size fits all’ solution, as a result the easiest and most effective way to navigate the process and to get the most out of the fund structure is to employ the services of an advisor who specialises in this field.

While SMSFs can provide stronger outcomes than external funds, and help you feel more confident about your retirement, they are also not necessarily for everyone. At Elston, we believe it is imperative our clients are aware of not only the cost and fees involved in setting up an self-managed super fund but also their ongoing responsibilities as Trustees.

Here are a few key questions to consider before making the change.

How much superannuation do you have?

As we advised in an earlier Elston post, a healthy minimum superannuation target for an SMSF is $200,000 – $250,000. With a lesser amount, you run the risk of your benefits being outweighed by the costs of your fund. However, it’s important to keep in mind that personal circumstances will naturally impact on the amount of funds you commence your SMSF with; based on the investment strategy you are using it as a vehicle for. Professional advice is a crucial first step for those who are unsure if they have enough superannuation – or combined superannuation – to successfully execute an SMSF.

Customising and investment solution to your needs

The people who see the strongest performance from their self-managed super fund are often those who already have an interest in, or an understanding of, the fundamentals of the various investment and asset class options available. If you have prior experience in property investment, fixed interest, or trading in stocks or shares, this is a good indication that you are better prepared for the investment strategy process that goes hand-in-hand with the annual operating and auditing of a SMSF.

Are you prepared to learn?

If the world of investment is new territory for you, don’t assume that a self-managed super fund is not a good choice. A little patience, research and effort to tailor a customised plan – coupled with some expert guidance – can enable many individuals to reap the rewards of managing their own super fund. If you’re determined to secure your financial future through the flexibility and control of a SMSF, and are prepared to put in the associated groundwork and maintenance, a SMSF is a viable option.

The concept of controlling your own super may be intimidating for many people. This is why having a professional team like Elston on your side is invaluable. Elston is one of the largest operators of individually managed accounts and manages close to $1 billion for SMSFs and retail investors. Our team of advisers have years of experience, and are able to help you navigate the various aspects of starting of your own self-managed super fund, from initial set-up and registration, through to administration assistance, investment strategy advice, and ongoing support.

If the idea of taking control of your financial future is appealing, and you would like to learn more about SMSFs, contact Elston on 1300 ELSTON (357 866) or email info@elston.com.au and an adviser will be in touch. Elston have offices in Brisbane, Canberra, Gold Coast, Ballina, Tamworth, Bundaberg and Hervey Bay.