In the previous blog we talked about points to consider before starting an SMSF, in this blog we will continue to highlight other points that are relevant to potential trustees. As we said before, it is important to know what you are getting into and whether you are cut out for it. Here are some more points to consider before starting an SMSF account.
Flexibility and control – When operated in the right way an SMSF can prove to be a blessing. It gives you the flexibility to manage asset allocation & investments, plan an individual tax strategy, plan your retirement and explore your own insurance options.
Understanding cost effectiveness – The total fees charged by industry and retail superfunds can be surprising. However trustees need to be realistic about the costs of running a SMSF including set up costs, annual accounting costs, stockbroker commissions, adviser fees and so on.
Estate Planning andInsurances – Insurances must be considered by trustees every year. Trustees also need to understand how SMSF aligns with Estate Planning with the right strategy in place.
The need to be advised – Have an open mind about hiring a professional adviser and getting advice. Take time to speak with family, friends and trusted advisers.
You need to be comfortable making investment decisions around when, where and how to invest or consider working with an adviser to help you. When in doubt, do not hesitate to ask. Have anymore questions in mind? We are here to guide you on anything you need to know in regards to SMSF, write to us at firstname.lastname@example.org or call us on 1300 707 326