Self Managed Super Funds For More Control
Tuesday November 18, 2008
Self managed super funds can be the best types of super funds for people who want maximum control over their finances. If you are well-versed in how a super fund works and can make the right investments to maximise the earnings of your self managed super funds over time, then you may wish to consider self managed super funds over other types of super funds.
Are there any disadvantages to using self managed super funds?
It mostly depends on your situation. If you do not have much spare time, managing your own super fund could be quite stressful. As many industry super funds and other super funds offer a wide range of investment options, if you do not have the time for self managed super funds, the more precise investment options some super funds offer may be useful.
Another disadvantage can be fees. While self managed super funds can be well-known for charging low fees, this may only apply to people with exceptionally large super fund balances. For instance, ESUPERFUND charges a flat annual compliance fee of $599. People with lower super fund balances could find better value in industry super funds charging a fee based on a percentage of the total balance. Those with larger balances could benefit as long as any percentage based fee in other funds would take their yearly fees above $599.
Are the advantages of self managed super funds worthwhile?
As long as you can make sensible investments, self managed super funds can be made to be very worthwhile. Those with large balances may save on fees and those who wish to have more control over their finances can do so.
Please click on our ESUPERFUND sponsor banner if you are interested in finding out how ESUPERFUND can help in starting self managed super funds.
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