Whilst there may be many benefits associated with running your own self managed super fund (SMSF), it is also important to understand and recognise that with the additional flexibility and control, comes greater responsibility.
SMSF trustees are typically people from vastly different financial and cultural backgrounds but they generally share a common characteristic, in that they want to make the most out of their super and are prepared to take an active role in building their retirement security. There are a number of questions to consider when you are thinking about setting up a self managed super fund (SMSF), such as:
- Do you have the time and inclination to maintain your knowledge of investments and legislation changes associated with your SMSF;
- Do you understand what your responsibilities and requirements are as a SMSF trustee?
- Is your fund balance of an adequate size to make a SMSF a suitable option?
- Are you looking to invest in asset classes not usually covered by the typical industry funds?