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The Pros and Cons of Having SMSF

By October 1, 2017 September 6th, 2019 No Comments
The Pros and Cons of Having SMSF

Let’s discuss the advantages and disadvantages of having SMSF

Last time, we discussed the most common questions about Self Managed Super Funds (SMSF). We gave you a guide as to what an SMSF is and how they work. Now, we will discuss it a little further by giving you the advantages and disadvantages of having SMSF.

Pros

Here are some of the pros of using an SMSF for your superannuation funds:
1. You have control over how and where your money is invested.
2. There can be fee savings if you have more than $200,000 invested. You can combined your and your spouse’s super balance to create an effective cost saving.
3. SMSFs offer the potential to use tax saving strategies
4. SMSFs can purchase your business real property.
5. SMSFs can give you certainty for your estate planning.

Cons

There are also disadvantages that you should also take into consideration, here are some of them:
1. You have to make sure your fund complies with the regulations (although your accountant will advise and guide you on this)
2. You have to administer the fund (again, your accountant will handle most of this)
3. As a trustee of the fund, you are open to personal litigation if the fund is not run properly.
4. You are responsible for the fund’s investment strategy (although this is established with you financial planner)

We hope these helped you further understand SMSF. If you need further assistance, you can also contact us at (03) 9810 3666. We are happy to discuss your future with you.

HTA Wealth

HTA Wealth

We help our clients exceed their financial goals so that their risk is managed while creating a lasting legacy. Ben Seeger & HTA Wealth Pty Ltd are Authorised Representatives of Australian Unity Personal Financial Services Ltd ABN 26 098 725 145, AFSL No. 234459, 114 Albert Road, South Melbourne, VIC 3205.

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