A self-managed super fund (SMSF) offers a lot of freedom and control, but it also comes with significant responsibilities. In this article, we explore the costs and responsibilities of managing an SMSF, including the need for a sound investment strategy, compliance with regulations, and ongoing expenses.

Responsibilities of managing  SMSF

Setting up and managing a self-managed super fund (SMSF) requires a significant commitment of time and resources. As the trustee of an SMSF, you must operate the fund within the law, making investment decisions that are in the best interests of all members. You’ll also need to formulate and adhere to an investment strategy that you review and update regularly.

Managing fees

It’s important to understand that there are ongoing costs associated with an SMSF. Each year, you’ll need to pay for an independent audit and the supervisory levy. You may also need to pay for additional services such as preparing the annual return, valuations, actuarial certificates, financial advice, legal fees, and assistance with administration. Insurance for members is also a common expense for SMSFs.

Conclusion

A self-managed super fund (SMSF) can be a great way to take control of your retirement savings, but it’s not for everyone. Before setting up an SMSF, it’s essential to understand the responsibilities and costs involved. If you’re not prepared to take on the time and financial commitment, it may be better to choose a different type of super fund. Additionally, it’s always a good idea to seek the help of professionals to ensure you’re operating your SMSF within the law and making sound investment decisions.