19th Nov 2015

Is an SMSF right for you?

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 Is an SMSF right for you?
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While many people are happy to have their super fund manage their investments for them, some prefer to be more hands on. A self-managed superfund (SMSF) may give you the control you want, but it’s not the only option. 

SMSFs suit people who are committed to putting in the time necessary to manage their investments and meeting their legal and administrative obligations. While some of these functions can be outsourced, there are costs involved, which is why SMSFs tend to suit those with larger balances.

This has lead to a new wave of products that allow investors to be more active in their superannuation, while still having the support and protection enjoyed by APRA-regulated funds, like industry and retail funds.

Direct investment options, such as AustralianSuper’s Member Direct, give engaged investors the opportunity to choosetheir own investments, while still accessing the low fees, insurance cover and professional investment expertise offered through an industry fund. Unlike an SMSF where the members are trustees, AustralianSuper is the trustee and takes care of all the legal and administrative requirements for you.



Investors in AustralianSuper’s Member Direct option can access real time trading inshares in the S&P/ASX 300 Index and some exchange traded funds (ETFs), a selection of term deposits and a competitive cash account via an online platform.

By accessing direct investment options within an industry super fund,members can control how much of their retirement savings they want to invest themselves, within limits,while benefiting from the scale and investment expertise of a large super fund.

AustralianSuper’s Group Executive, Membership, Paul Schroder, said, “The development of direct investment options like AustralianSuper’s Member Direct platform is recognition that many people do want more control, and to be more engaged.

"AustralianSuper’s Member Direct is proving to be an attractive option for those members who want more control over their portfolio without the red tape of reporting and compliance obligations.”

“Member Direct suits people who want to be actively involved in managing their investments, but don’t need the complexity of an SMSF.”

As with all financial products, you need to choose the one that suits your individual needs and circumstances. This is where a professional financial adviser can help.

If you would like to find out more about AustralianSuper’s Member Direct option, visit AustralianSuper.

This article has been sponsored by AustralianSuper Pty Ltd ABN 94 006 457 987, AFSL 233788. It contains general advice and does not consider your personal objectives, financial situation or needs. Before investing in any financial product you should read the relevant PDS and consider if it is right for you. For more information, please visit australiansuper.com





COMMENTS

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24th Nov 2015
11:30am
One should be allowed in any fund to have their contributions put in whatever option they want (paragraph 4 - ?), after all, it is your money. I'm in a retail fund and get charged NO commission, only charges may be for switches. There's quite a bit of research and a bit of record work with a SMSF, as a mate of mine tells me and he's not earning a great deal more than me. Courses for horses. Good luck
loraines
24th Nov 2015
2:29pm
Pay $400 a month to a financial advisory company to manage our Super Fund/SMSF. And it's been going backwards most years.

Wish we'd never got into this.
Anonymous
24th Nov 2015
2:54pm
Take it out of where it is and go to a different super provider and be a passive fund member - tis free.
Rae
25th Nov 2015
8:45am
If it has been going backwards most years recently and you are only withdrawing profit not capital or it is still in accumulation then you need to transfer it ASAP into a less costly reputable fund or find another fund manager to manage it. Your accountant should be able to offer suggestions.

I run my own fund outside of the superannuation system and have been making very good returns every year except 2008/9.
I can make just on $33000 without paying tax and after that I like the tax. As my accountant says if we are paying tax we are making money. It really is as simple as that.

The irrational fear of paying tax is ridiculous.

You really must know where your money is invested, the costs and the risks involved. Check out the allocations to Australian shares, International shares, and especially what bond exposure you have. I suspect the bond funds will be the tricky one going forward.
loraines
24th Nov 2015
3:11pm
That's what I thought. I've even just written the letter!
Anonymous
24th Nov 2015
3:28pm
Good stuff. Just make sure that commissions for management are not taken out if you are a passive member, that there are no fees, and what charges are made for what. I was with ING (no good), AMP (helpful), NAB (so-so), and am now with Colonial First State (part of the CBA), and have no trouble. The choice is yours, just make sure of the fees, commissions, and charges for passive member (meaning you will have to pay for any advice, but where you are now you are paying charges even without advice). Good luck.
Anonymous
24th Nov 2015
4:15pm
Loraines you can have a go at a self managed Fund you can pull off the fund details on the internet or use a provider of such funds such as Abbots believe me these funds are pretty standard and its really not necessary to read all the details just sign them take them down to the bank set up an account which is easy .
Get a tax file number again the form can be pulled off the Aust Taxation Web sight and away you go invest your funds as you like even bank accounts such as term deposits is okay or dable in share market if you want.All of this will probably cost you a few hundred dollars to set up. You will then need to get your fund rolled over to your bank account again this form will come with your other super documents.
At the end of the financial year you will need accounting work done this should not cost you more than a grand per annum.
Your fund will not make a fortune but you will be a mile in front and you will save a fortune from your rip off I mean financial advisor. It sounds a lot of work but it isn't and you will thank yourself in future years.
Franky
24th Nov 2015
9:34pm
One thing to consider is that your money in a super fund if invested in cash is not guaranteed by the govt as it's not in your name but rather in the Fund's trust name. A SMSF is a way around that if you are close to retirement and you want to secure your funds by being in the cash option. I'm presently considering going into an SMSF and have been checking out and liking the superannuationwarehouse.com.au. A very economical, no nonsense option with monthly fees and all the compliance work done for you. Feeback appreciated!
Anonymous
25th Nov 2015
8:12am
Looks ok however as you say they only do the compliance work you still have to run the fund yourself and supply the details of transactions at the end of the year to them. They don"t do any more than a normal Acountant/tax agent if you contact a couple of local Accountants etc you may get a better deal without monthly fees etc.
Good luck.
Possitive Possum
25th Nov 2015
11:44am
Hi, it would be nice to not use acronyms for words in the initial emails. I must say, it puts me off terribly, and I am sure that there are a lot more people out there who just don't know what all the acronyms actually mean. I mean, unless you are in the super fund thinking mode, why would you even know what an SMSF is? :)
loraines
25th Nov 2015
12:46pm
It is spelled out in the article:)


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