What Makes an SMSF Super – Retirement Planning Tips for Taking Charge of Your Future

By Maria Rogerson

December 2, 2016Finance

If you had any doubts about setting up an SMSF before, and you no longer have them, congrats – I guess you came to your senses and realised that life doesn’t end once you retire. In fact, some people would even say that life begins after you retire, because you no longer have a job for which you need to get up at 7 in the morning, nor you have obligations and deadlines to stress over. You’re free to do and go wherever you want to. However, as good as all this may sound, it comes at a certain cost. And in order for you to be able to live the good life in your golden years, you need to start saving now.

retirement planning

The truth is, setting up and running an SMSF isn’t a simple job, as it requires professional knowledge in auditing and accounting. However, don’t let that stop you from executing your idea, since you can always look for SMSF providers to set up the fund and run it for you.

The point of owning an SMSF is to have control over your assets through being in charge of all the moves you can make with your money: invest them, manage returns and similar. If you hire SMSF providers, then they most certainly can take care of all these things for you. However, have in mind that there are providers out there who know how to trick you and you won’t be aware of the scam until it’s too late. There are SMSF companies that deliver results way below the average at a cost way above the average, which means they push you into big losses.

An advantage that an SMSF provides you with, is changing investments or fund managers if you aren’t satisfied with the results. And you don’t need to cancel your pension to do so, nor you have to trade-off the performance of the fund for the age pension entitlement.

However, it’s important to mention that the SMSF isn’t completely risk-free. Actually, it’s rather dangerous if you think you’re just going to leave your money and everything about it in the hands of a company provider. That’s how people become loose and lose control over their affairs. Also, you want to be aware of the costs of getting an advice for your superannuation fund; sometimes, getting the wrong advisor could cost you a small fortune which can easily cut your funds even before you get the chance to perform.

As a conclusion, I’d say that it’s probably a very good idea to invest in a SMSF. However, educating yourself first, having all the facts in your calculations is crucial so you don’t end up being scammed by various opportunist companies.