27 Jan SMSF Series: An SMSF can be cost effective
I am often asked by my clients about Self Managed Superannuation Funds and how they compare to industry and retail superannuation funds. In this SMSF Series I will be exploring each individual benefit of an SMSF to help clarify the often general benefit statements available.
We know that more and more Australians are turning towards an SMSF for their superannuation investments so let us take a closer look at why and how this could possibly work for you.
An SMSF can be cost effective
- Typically retail and industry superannuation funds charge administration fees based on a percentage of the assets within the fund. As the asset base increases so do the fees.
- The fees charged for an SMSF are typically of a fixed nature, so there are no surprises.
- Basically, the larger the pool of available funds, the more cost effective.
Who would this benefit?
Individuals with a large amount of available superannuation funds. Balances over $200,000 are competitive with both cheaper and more expensive large funds, provided the SMSF trustees undertake some of the administration tasks themselves. With Balances over $500,000 it is wise to opt in for a full SMSF administration service to remain competitive with the industry and retail funds.
For more information on SMSF costs, and minimum cost-effective balances please contact me firstname.lastname@example.org