Self Managed Superfunds: Are they for you?

ASIC have released a fact sheet comparison between Self Managed Superfunds and Industry funds. Some key points:

Generally, SMSF’s with balances under $500,000, on average,  have lower returns after expenses and tax compared to industry and retail funds.

On average, SMSF’s with balances above $500,00 have returns that are competitive with industry and retail super funds after expenses and tax.

Another key point raised by ASIC with an SMSF is that it takes over 100 hours a year to run an SMSF !

As an SMSF Trustee, you are responsible for your SMSF complying with the law, even if you use a professional to help !

An SMSF Trustee must:

1. Meet reporting obligations – financial statements, tax returns,independent audits

2. Prepare and implement an investment strategy and adapt it to meet members changing needs.

3. Organise annual valuations of assets if required.

4. Keep up to date with changes to superannuation law

5. Manage the SMSF’s administration and paperwork.

The average cost of running an SMSF is $13900 per year !

For a full copy of the fact sheet download it here

Butlers Accountants have a specialised SMSF team to guide you on your superfund journey.