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Craig R.
Craig R.
Redland Bay, QLD

Are smsf a good investment?

6 years ago


Hi Craig.

That is a good question and depending on who you ask the answer varies.
The SMSF lending space has changed quite dramatically since the trend started a few years ago.

It is extremely important to talk to an EXPERIENCED financial Advisor who will look at your FULL. Financial picture and advise accordingly .

An accountant can also advise on how to structure the Fund .

Be warned : this is not a quick and simple process HOWEVER if you get the right advice you will know whether an SMSF is beneficial to you

Hope this helps. If you need a referral to a FINANCIAL ADVISOR I can help

All the best.

Hi Craig. A SMSF is not an investment but rather a vehicle that allows people to manage their own superannuation.
Whether it is right for you depends on your financial literacy.
People setting up their own SMSF usually require help from professionals. Specifically a licensed financial planner.
Ask around in your circle of friends if any of them can recommend anyone for you to speak to.
Good advice costs. Poor advice is usually free. You decide.

SMSF isn't an investment. It's a way to invest for your retirement. The underlying asset the SMSF buys is in most cases exactly the same as if you bought shares outside SMSF. Do your question really is, is investing via an SMSF smart? That answer depends on what the objective is, how many years to retirement and how much time, skill and desire you have to be your own fund manager. My advice is talk to a good financial planner before spending money on an SMSF to have these questions answered first.

Any investment needs to be assessed individually irrespective of the manner in which you structure the purchase

Hi Craig, there isnt a yes or no to that. The good or bad investment is what you do with the SMSF.

Happy to put you in touch with financial planners if you wish to discuss. Regards Ariel

an smsf is itself not an investment, but rather a vehicle for investments

Hi Craig,

I'm a Financial Adviser based in the Brisbane CBD.

In a nutshell a SMSF allows you and up to three other members run your own super fund by becoming the trustees of the fund.

You are then responsible for complying with all of the super legislation governing self managed super as well as administrative obligations such as having the fund audited on an annual basis.

On the plus side, you get complete control over the investment options including direct property which is not available in retail super.

A negative is that if you don’t have sufficient knowledge or experience in maintaining the day to day running of the fund, or lack the know-how to invest your funds, you rely on paying for these services which may defeat the purpose.

As a general rule of thumb, investment earnings on lower balances can be severely impacted by fees which can make a SMSF less cost effective.

I hope this helps, let me know if you have any questions.

Stuart Christie

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