A self-managed super fund (SMSF) is a type of fund that allows you to manage your own retirement savings. It requires active involvement and financial knowledge.
With a self managed super fund, it’s a much more hands-on experience compared to a traditional super fund. That can mean spending more of your time to manage it, or paying a financial adviser to do this for you. Alternatively, you can let our expert investment team handle your investments for you, so you have more time to enjoy the things you love in retirement.
With an SMSF, you’re responsible for researching what you invest in and monitoring your portfolio’s performance.
You’re also responsible to make sure you follow the law and are compliant with regulations, annual audits, admin & record-keeping, and any related fiduciary duties.
Considering the responsibilities of running an SMSF, you are likely to require a strong understanding of finances including share markets, investing and economic cycles.
Cost
There are set-up costs and fixed annual costs.
Investment knowledge
It is more likely that high investment and finance knowledge is required. If your SMSF doesn’t perform as you expect, the responsibility falls with you and your investment decisions.
Administration and regulation
High levels of time required for admin. Knowledge of SMSF regulations also required.
Insurance
Insurance premiums may be higher compared to a traditional fund, due to their ability to negotiate premiums and buy in bulk.
Flexibility
High – it’s your SMSF – you choose how you want to run it. If your SMSF is a victim of theft or fraud, you aren’t entitled to any compensation, unlike a traditional super fund which is protected to some extent by APRA and ASIC regulations to protect members’ finances.
Investment opportunities
A broad range of investment opportunities are available. Large scale projects like property development, infrastructure and private investments may not be available.
Cost
Usually, no set-up fees.
Annual fees are charged as a % and may be capped.
Investment knowledge
It’s more likely that only basic investment and financial knowledge is required to open and manage an account.
Administration and regulation
Low levels of personal admin required.
Insurance
Insurance premiums may be lower compared to a SMSF due to a traditional fund's ability to negotiate premiums and buy in bulk.
Flexibility
There is still plenty of flexibility, with a broad range of investment options to choose from, including products that keep your money invested and pay yourself an income in retirement.[M5]
Investment opportunities
Large scale investment opportunities that are only available to larger super funds, like property development, infrastructure and private investments that may not be available to smaller super funds and SMSFs.
If you want to be more hands-on with your investment strategy, you can still be in charge of your investment choices with a traditional super fund.
With Aware Super, you have the flexibility to choose investment options that allow you to diversify your investments in different asset classes, with a mix of growth and defensive assets. You can also choose single asset class investment options.
Our investment team consists of professionals with diverse backgrounds, deep expertise and global experience to help you and your super reach your best retirement.
If you have an SMSF and you’re thinking of returning to a traditional super fund, you may want to get some expert advice.
Transferring your money from an SMSF to a super fund is easy with the right help.[C1]
Aware Super has a team of advisers who can help you understand your options.
