Self managed super fund is generally a good and recommended alternative for those who have specific situations. Self managed super fund offer you to deal and control your super. It is up to you how will you invest your money. You are able to choose your providers and you can benefit from fee and tax savings depending on the size of your account/s. In spite of this, SMSF do not fit everyone, that is why, it is very important for everyone before choosing your self managed fund, to look and ask some of these questions:
- How much money can invest a person? – There is no minimal amount required and needed to establish a self managed super fund, but the conservatives recommend that is best to invest at least $250 000.
- How much will cost you? – The cost of setting up self managed fund vary and are significant. So it is not recommended for those who do not have a stable account balance. Better consult with and SMSF expert(http://www.superannuationwarehouse.com.au/)
- What are the responsibilities? – Every person as a trustee of a self managed super fund is responsible for the investment administrative and legal demands of managing the fund. That is why is needed long time, effort and knowledge to fulfill these requirements.
- Are there involved any specific risks? – If there is a possibility to fail to fulfill the legal demands of a self managed super fund, the fees and penalties are significant. People that have small bank account balance might have problems diversifying the investment account to reduce the investment risk.