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Transcript:
Self Managed Super Easy if Done Right
By Louise Halliday, Elston Partners

6th May: 2014:  Fraser Coast Chronicle (Maryborough)

Superannuation is becoming more topical than ever before with television commercials wanting everyone to be on the escalator that goes up! As part of the superannuation space, the choice of funds is vast and the fastest growing sector is those who want to take control of their own retirement nest egg by establishing their own Self Managed Super Funds (SMFSs). There are many myths associated with the SMSF opportunity, and we have selected the following key myths to dispel.

 Myth One:  Too difficult to self manage

SMSFs are not difficult to establish or manage as long as you have the right guidance. There are rules and regulations which must be abided by, however you could interchange the term “Self Managed” with “Family Fund.” When establishing a Family Fund, you take on more responsibility for your super, and therefore for your nest egg. As a result, you have ultimate control over your money. There is an emphasis on the Trustees of Family Funds to ensure it is managed for the benefit of the members, hence the need to seek professional advice in this regard.

Myth Two:  Ongoing fees and costs

The biggest myth of all! Family Funds are not expensive. There are establishment costs which often come out of the super fund balance. If you take into consideration that you will retain the fund for 30 plus years, the initial costs become virtually immaterial. Ongoing management fees are flexible and can incorporate a number of fixed fees that don’t dramatically increase as your fund grows. As this opportunity becomes the more actively sought after solution, competition is driving down costs which is opening up the opportunity for lower income earners to take control of their money.

Myth Three:  Industry or retail funds provide better performance.

In short, superannuation is a tax structure to put your money into, not an investment.  How you choose to invest your money once it is within superannuation is what provides you with performance. In having your own fund, you have the ultimate choice and flexibility to choose the investments that suit you rather than being constrained by the limited choices offered in industry and retail funds. The Family Fund choice includes holding money in cash and fixed interest where no fees apply, if that is the best solution for your requirements.

Seek Advice

Taking control of your retirement nest egg is an important responsibility. AS we continue to live longer, we all need to ensure we not only accumulate enough, but also ensure that what we have accumulated lasts the distance. Seeking the advice of SMSF specialist advisers will ensure you are making the right decisions for your specific requirements.