A Self Managed Super Fund can be a powerful retirement planning structure, but it should never be viewed as a status symbol or a shortcut to better returns. The real decision is not just whether you are capable of setting one up. It is whether an SMSF genuinely suits your circumstances, goals, financial knowledge, time commitment and long-term retirement strategy.

An SMSF gives members more control, but with that control comes responsibility. SMSF trustees are responsible for running the fund and making decisions in the best financial interests of all members. They must also meet ongoing compliance, reporting, record-keeping and audit obligations. 

Top 5 reasons to contemplate an SMSF

1. Greater investment control
   An SMSF may appeal to people who want more say over where their retirement savings are invested. This may include direct shares, cash, managed funds, property and other permitted investments, depending on the fund’s investment strategy. 
2. A more tailored retirement strategy
   For some people, an SMSF can allow more personalised planning around retirement income, estate planning, tax strategy and family wealth transfer. This is where specialist advice becomes especially valuable. 
3. Potential flexibility for business owners
   Some business owners consider SMSFs because they may offer strategic opportunities, including holding certain business-related assets, where permitted. However, the rules are strict and mistakes can be costly. 
4. Pooling family super balances
   An SMSF may allow family members to combine their superannuation savings within one structure. This can provide scale, but it can also create complications if members have different goals, ages, risk profiles or relationship dynamics. 
5. Greater visibility and involvement
   Some people simply want to be more engaged with their retirement planning. An SMSF can encourage deeper involvement, but that involvement must be disciplined, documented and compliant.

Top 5 reasons to consult an SMSF specialist

1. To understand whether an SMSF is suitable
   An SMSF is not for everyone. ASIC has raised concerns about poor SMSF advice and the risk that unsuitable recommendations can cause serious harm to retirement savings. 
2. To understand the true costs
   SMSFs can be expensive to establish and run. Costs may include accounting, tax advice, auditing, investment advice, legal advice, insurance premiums and ATO levies. 
3. To avoid compliance mistakes
   The ATO makes it clear that running an SMSF is a major responsibility and that professionals can help with different aspects of the fund. 
4. To create a proper investment strategy
   An SMSF investment strategy should reflect the members’ goals, risk tolerance, liquidity needs, insurance needs and retirement timelines. It should not be based on guesswork, trends or one attractive investment idea. 
5. To protect your retirement future
   Your super is designed to support your future lifestyle. Before taking control of it yourself, it is worth asking whether the benefits outweigh the time, cost, risk and responsibility.

An SMSF can be an excellent structure for the right person, but the wrong structure for many others. Before making the leap, seek advice from a qualified SMSF specialist, financial adviser, accountant and legal adviser where appropriate.

General advice warning: This article is general in nature and does not consider your personal circumstances. Always seek professional advice before making decisions about superannuation or retirement planning.

If this article has inspired you to think about your unique situation and, more importantly, what you and your family are going through right now, please get in touch with your advice professional.

This information does not consider any person’s objectives, financial situation, or needs. Before making a decision, you should consider whether it is appropriate in light of your particular objectives, financial situation, or needs.

(Feedsy Exclusive)