Establishing and running a Self Managed Super Fund (SMSF), compared to traditional alternatives

Useful information on the costs of establishing and running an SMSF and comparing it to traditional alternatives can be tricky to source when you are not an expert. 

 

So when Stuart Pullar from Mortgage Choice Ashgrove tells you he read an article over the weekend that was very good,  with a lot of very useful information on the costs of establishing and running an SMSF and comparing it to traditional alternatives, you run with it.

 

 If you are thinking of Self Managing your Super fund, and perhaps including property as part of it, we'd highly recommend reading this report from Rice Warner, who's Superannuation Research is "influential in shaping the Superannuation industry".

 

ASIC has posted it on their website, so to read it in full, click on this link:  

 Rice Warner report, via ASIC . 

 

A breif report summary: 

The purpose of the report is to assess the viable minimum size of a SMSF.  

 

It basically finds that $100k is about the threshold for starting an SMSF if you get one with relatively low costs and are prepared to do most of the management yourself.

 

Key findings:

 

  • SMSFs with $100,000 to $150,000 are competitive with traditional retail personal superannuation plans, provided the trustees undertake some of the administration.

 

  • SMSFs with balances of $200,000 or more can provide equivalent value to industry and retail funds, provided the trustees undertake some of the administration. 

 

  • SMSFs with balances of $500,000 or more can provide equivalent value to industry and retail funds, on a full service basis. 



For more detailed information and to the read the article from Rice Warner yourself, the full report can be viewed at: 

 

https://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/cp216-RiceWarner-cost-of-operating-smsfs.pdf/$file/cp216-RiceWarner-cost-of-operating-smsfs.pdf

 

If you would like to speak to one of our experts on SMSF’s,

please contact Stuart Pullar from Mortgage Choice Ashgrove on 3366 9982,

or drop into either of our offices at 365 Waterworks Road Ashgrove,

or at 85a Mawson Street, Stafford Heights.

 

For further contact details, please click on our contact us page at www.mortgagechoice.com.au/stuart.pullar or email us directly at stuart.pullar@mortgagechoice.com.au

 

If social media is your thing, please comment on our page at www.facebook.com/mortgagechoiceashgrove

 

If you feel the information in this blog was helpful, please share it with your friends and family. 

Posted in: Financial planning

Contact us today.


Additional Comments? * :