SMSF Basics – What are the Good and Bad points of having a Self-Managed Super Fund (SMSF)?

What are the Good and Bad points of having a Self-Managed Super Fund

What are the Good and Bad points of having a Self-Managed Super Fund

Self Managed super funds (SMSF) have good and bad points like everything in life, and you need to consider carefully whether it is suitable for you, such as can you manage finances, have you the time – so let’s look at some major considerations –

1.  Some Pros of SMSF:

  • Control over investments they give you
  • Flexibility of investments
  • Choice of investment spread
  • Protection from bankruptcy and other legal claims
  • Low tax saving environment – 15% concessional tax (Nil in Pension mode)

       eg Dividend $100 Franked received

                                   (ie – $142 less 30% Co. Tax paid ($42)  leaves $100)  

       at tax time means – (some examples)

       Life Stage                  Outside SMSF (your Tax Rate)         Inside SMSF (15% tax)

       Tax Rate 45%           pay 15% tax $21 pay                            credit 15% $21 back

       Pension 0%              may affect aged pension, 0%             credit 30% $42 back, Tax 0%

2.  Some Cons of SMSF:

  • Responsibility – Penalties: 46.5% tax, fines
  • Administration involved
  • Your suitability to manage investments
  • Complaints – no access to Super Complaints Tribunal
  • Commitment and work involved
  • Hard if you do not seek assistance with investment knowledge and compliance responsibilities

Interested to know what self-managed super (SMSF) is all about, how to get setup FREE and if it is for you?

We have FREE seminars and bonuses every month – Self Managed Super Fund Roadmap (all you need to know) see 1 SMSF – FREE Seminars




About SuperBenefitnews

Self-Managed Superannuation Service Providers in Australia. SuperBenefit will SET UP your SMSF and provide investment education for a better result. We take care of all your administration, accounting, ATO lodgement and audit of SMSFs, working with you and your advisors. If you want advice we can arrange one of our recommended advisors and accountants to meet with you, as we do not give advice, but take instruction only. Take control of your super, including property shares and other assets. Learn how to be your own advisor - make better decisions - by being mentored and coached to invest your own super wisely and strategically by qualified partners. Book to come to an event to find out more, or - Call us 0407 361 596, no obligation FREE strategy call.
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