Bramelle Partners can advise and assist you on your setting up an SMSF. The first step is to conduct a review to determine whether a SMSF is suitable for your needs as well as advise you of the time and costs involved in managing your SMSF compared to how your current superannuation is managed.
Whilst there is some work involved for the trustees to maintain adequate SMSF records throughout the year, any members who are suitable to operate an SMSF may enjoy some of the following benefits:
- Wider selection of investment choices
- Ease in implementing tax strategies
- Consolidating multiple members in one fund which reduces cost and provides flexibility in your investment choices
- Total transparency in the assets which your SMSF is invested in
- Costs are reduced and usually fixed assuming no adviser costs are paid
Below are some of the disadvantages in running a SMSF:
- Costs are higher than retail or industry funds where a SMSF’s total balances are not above a certain amount (as a rule of thumb total superannuation assets should be at least $150,000 where industry and retail funds are charging approximately 2% of fees on funds under management).
- Legal and compliance obligations need to be followed to ensure the fund remains compliant and avoids penalties which are excessive. Bramelle Partners will assist you in ensuring your SMSF remains compliant throughout the year and adequate documentation is maintained.
- Below expected performance and lack of expertise. The trustees will need to ensure they have the necessary skills and expertise to invest the SMSF’s assets accordingly or engage with a financial planner to assist them with their investment decisions.
Whilst there are some disadvantages in running a SMSF most of these can be mitigated and managed by using the expertise of our SMSF accountants to navigate through the SMSF accounting and compliance requirements. The advantages in running a SMSF are extremely beneficial and helpful in ensuring your retirement savings are working for you in the hardest possible way.