SMSFs are a tool for risk management, investment management, retirement planning and estate planning.

When assessing the merits of establishing an SMSF you should consider the advantages as well as the costs and responsibilities associated with being a trustee of a self-managed fund.

The advantages are control, tax effective investments, costs (for balances greater than $200,000), and flexibility.

Some of the disadvantages are a lack of skill, a lack of knowledge, not to mention the time involved in managing a SMSF.

Some people prefer the hands-on control that a self-managed super fund offers. However, with this added control comes both additional responsibilities and greater workload. Clients need to be prepared for the need to research their investment options and track the performance of the fund on a regular basis to ensure investment decisions meet the needs and objectives of the fund’s members. In addition, there is the need to ensure that the fund meets all the obligations under the very strict rules regulated by the Australian Taxation Office (ATO).

A self-managed super fund (SMSF) is a form of superannuation fund that offers members the opportunity to take control of their retirement savings and manage the day to day decisions and obligations associated with running a superannuation fund.