Is DIY SMSF Right For Me?

Before you set up a DIY SMSF you should seriously consider whether it is suitable for your personal needs, objectives and financial circumstances.

Here are a number of factors you need to consider before you decide whether a DIY SMSF suits you.

  • Your objective:

Would a DIY super be a good-fit into your overall financial strategy and objectives?

  • Enough superannuation

You will need to consider whether you have enough in superannuation for a DIY super fund to be cost-effective and to achieve appropriate investment diversification. Opinions vary as to how much superannuation money you need to make a DIY SMSF effective. As your fund balance increases, its relative costs reduce. ASIC suggests that at least $200,000 is needed. This may however be lower. The $200,000 or lower can also be the combined superannuation account balances of up to 4 members.

  • Investment Expertise

Generally, you will need to have some investment expertise in financial markets and/or the property market depending on what the fund is to invest in. Alternatively, inadequate knowledge and experience may be compensated by use of a professional such as financial adviser, accountant or administrator to assist you in running your DIY super fund successfully.

DIY funds are able to invest in all sorts of different assets including the share market, bank deposits, real property, foreign currency accounts, overseas assets, derivatives ,CFDs, collectables, precious metals, private unit trusts, unlisted companies, agricultural investments,  loans to persons/entities, etc

  • Time

You will need to give continuous attention to making sure your DIY SMSF is properly managed and that all the responsibilities that come with the office of trustee are fully and properly discharged.

If you are still undecided as to whether DIY SMSF is good for you or not, please don’t hesitate to Contact Us Today!