A self-managed super fund is a great way for Australians to start saving for their retirement. This type of account is a little different because the member is also the trustee, meaning that they run it for their own benefit and are responsible for complying with any related laws. Many Australians prefer to contact self managed super fund accountants because they are in charge and get to invest when and where they like. While having this power and freedom can seem like a good idea, there is a lot of skill and time required and many people who have a self-managed super fund choose to seek the help of a financial advisor because of this. It is imperative for Australians to not see just any financial advisor, but one that is fully qualified and licenced. Furthermore, many people don’t know that a self-managed super fund can only be used for providing retirement benefits. The savings cannot be used for any other purpose and they cannot be released early. As there are many different things to consider before opening a self-managed super fund, this article will explore some important things to know. Without further ado, here are some things to know about a self-managed super fund.


Consider the time, cost and skill involved

Before opening a self-managed super fund, it is important to first consider the time, cost, and skill that is involved. There are on-going costs involved and also costs required to set up the account. Furthermore, yearly fees are generally more that would be paid for a regular account. It is also important to factor in the costs that may be required to pay to see a financial advisor, to pay for insurance, to pay to get a return done and much more. As well as additional costs, a lot of time and research needs to be put into such an account. The law needs to be researched and adhered to, otherwise lefty penalties and tax consequences may occur. Additionally, research much be conducted to establish how and where to best invest. These investment decisions require knowledge and skill and also need to be watched regularly. While all of these factors are enough to turn a lot of people away from a self-managed super fund, others enjoy the challenge and are happy to invest the time, skill and money that is required to see benefits.


Things to know about the set-up process

Setting up a self-managed super fund is no easy task. This is why Australians are encouraged to seek the help of professionals to set up and run the account. A variety of professionals are available to not only set up the account but to ensure that it is meeting all of the law requirements. As previously mentioned, there are costs involved, and a trustee must be chosen (this can be individual or corporate). An auditor is also required to audit the account each year and this is mandatory. The funds will be assessed by this auditor who will ensure that all laws and regulations are met. As there are many things to consider and know when setting up and when running these kinds of funds, it is imperative to perform thorough research and to seek the help of professionals.


There are many benefits that can be had when setting up these kinds of accounts. Many Australians are able to hit their retirement goals earlier and can feel safer and more comfortable later in life. While there are many benefits, it can also be complicated if jumped into without the necessary research and support. Seeking a professional is beneficial so fewer surprises will occur in the long run.