Having your hand on the wheel of your retirement is wonderful. You may also appreciate there are many advantages to a SMSF for you, but establishing a Self Managed Super Fund (SMSF) demands an analysis of the responsibilities that go with it.
Each member of an SMSF is a trustee making you fully responsible for the decisions and operation of the fund. That means being compliant with all regulatory and legislative rules.
There are professionals that can do much of the work, but this is designed to have a do it yourself aspect to it requiring your involvement. If you are not able or willing to accept this responsibility it’s advisable a SMSF may not be the correct vehicle for you.
Cost of managing the SMSF
Fund members may pool assets, but if they are insufficient you may find it advantageous to wait on establishing a SMSF, to avoid having the cost of having the fund exhaust your assets.
Risk of non-compliance
The Australian leaders are sincere in letting you be in charge of your SMSF. Yet they are equally sincere in holding you responsible for the Self Management. Failure to live up to the obligation can result in costly penalties and fines.