Look at these myths and facts about SMSFs before deciding if you want an SMSF.
You may think an SMSF is right for you – but some things you have heard about SMSFs might be more myth than fact.
Let’s take a look at some common reasons for starting an SMSF – and what the reality is!
Everyone has an SMSF and I’m missing out!
Your individual circumstances are relevant in deciding whether an SMSF suits you or not.
Just because your friends have one doesn’t mean it’s right for you.
It doesn’t cost much to have an SMSF.
There are set up fees for an SMSF as well as ongoing expenses.
These costs can quickly add up and may make an SMSF more expensive than other funds.
I can invest in whatever I want!
There are lots of rules on what an SMSF can and can’t invest in.
If you get it wrong there are serious consequences for you and your fund.
I will get better returns on my super investments.
You are responsible for the investment decisions, so if you don’t have a good understanding of financial investments your super returns may suffer. You also need to factor in investment costs.
It will be fun to have an SMSF!
You need time, interest and the capability to run your SMSF successfully.
Ongoing tasks can be a lot of work and you need to keep up to date with super laws. If your fund gets something wrong there can be serious consequences.
It will be great to be in an SMSF with family and friends.
It might be great when you start – but a breakdown in a relationship can have a huge impact on an SMSF.
Members can’t be forced to leave or stay in an SMSF, so you need to have workable relationships with all members.
SMSFs may be popular – but they don’t suit everyone.
Consider speaking to an SMSF professional to see if it is right for you.
For more SMSF information, take a look at our other videos – or contact us here