Are you thinking about setting up your own Superannuation fund? To update you with the statistic here, you are not alone. The run of SMSF has been nothing short of incredible, and it has gathered 1 million members in a very short time. Over the last 4 years, the industry has shown 26% growth and has a whopping $560 billion in assets. So when you say you want to set up a SMSF for yourself, you are not talking balderdash for sure.
What should your fund budget be like?
Presently, members average a balance of $543,000, but it is not what you need to wait for before whetting your appetite with SMSF. You can give it a go even if you have $100,000 in your kitty. There is a school of reasoning which says you should not venture into the SMSF territory unless you have $200,000 to begin with. After all, costs of managing a SMSF may run up to $2,000 and unless it is 1 percent or less than your total fund value, what’s the point of setting up a fund.
I think you can very well begin modestly
I beg to differ here and for two good reasons. One, competitive pricing has brought down the figure $2,000 to a lot lesser value and this means that you can touch the 1% mark discussed above even if you begin the SMSF game with something as modest as, say, $70,000. Second, even if what’s being said in the above paragraph had been true, I don’t see how the figure 1% unsettles the lucrative option called SMSF.
Can you manage the show yourself?
Yes, what you have got to figure out is whether you have the time and the know-how to maintain something like this. It is a relatively volatile industry, and sometimes the quicksilver changes can catch you unawares. Heard about the saying, “with great power comes great responsibility”; nowhere is this more manifest than the SMSF world where you can choose your investments and control your fortunes. The crux question remains- have you got what it takes to bear the responsibility?
