Should I Invest In SMSFs- In’s & Out’s To Know!

Should I Invest In SMSFs- In’s & Out’s To Know!

An SMSF gives you more freedom and choice to access investment choices that might not be available through a retail or industry super fund otherwise. An SMSF fund can now have up to six members, giving you more access to investment options that you might not otherwise have.

Self-managed super funds (SMSF) have a number of advantages, one of which is the ability to choose how your retirement money are invested.  On the other hand, managing an SMSF entails a lot of duties and managerial abilities. This is so that you, and not your accountant, financial adviser, or lawyer, are responsible for your SMSF’s regulatory compliance.

Benefits of SMSFs

  • Better Investment Options

An SMSF gives you additional freedom and opportunity to explore investment choices that a super fund would not otherwise allow. This covers tangible precious metals, alternative assets like cryptocurrencies, as well as assets like art and collectibles.

  • Tax Advantages

The same lower tax rates that are offered through industry or retail super apply to trustees of SMSFs. Therefore, your investment return is currently taxed at a maximum rate of 15% rather than your marginal tax rate, which outside of superannuation might be as high as 45%.

  • Greater Access to Opportunities

There can be up to six participants in an SMSF fund. Combining the funds of six investors gives you more leverage to take advantage of investment opportunities that you might not otherwise have access to. Scale might also assist in lowering costs.

What Do I Need To Consider In Terms of SMSF?

It’s challenging to manage an SMSF. As the trustee, it is your responsibility to make sure the fund complies with all applicable laws and regulations because failing to do so could result in serious penalties.  If it is determined that the fund violated its compliance obligations, sanctions may include fines and legal action on either the civil or criminal fronts.

You must carry out an investment plan that will generate sufficient returns to cover your retirement needs. This indicates that you must:

  • Ensure your fund is sufficiently diversified to assist reduce risk;
  • Record your investments and transactions;
  • Have a solid understanding of how investment markets operate.


An SMSF may not be a smart choice if you are too occupied because managing and administering it requires a lot of time and they are not for everyone.

Successful management of an SMSF involves knowledge of investments, law, super, and administration, or the capacity to enlist the assistance of experts in those fields.

If you want to start an SMSF, our tax accountant might assist you in determining whether going it alone is a wise move or not. For more details, schedule a consultation session today.

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