Print this page SMFS Q&A's

Your super is your investment for your retirement. If you’re thinking of switching to a self-managed super fund (SMSF), it’s best to ‘look before you leap’. SMSFs won’t suit everyone so it’s important to see if they are right for you.

Q. What’s involved in self-managing your super?

A. Self- managing your super involves setting up a trust deed, establishing an investment strategy and taking control of your own superannuation investment. This can usually be achieved with assistance from your accountant and/or a licensed financial planner.

Q. Do you have the time and the skills?

A. Self-Managed super means you do the work. It’s important to establish whether you have the time to manage your invested superannuation.

You need to work out an investment strategy, then select and manage investments adequately so their value will grow and meet your fund’s investment objectives.

You are required to be a trustee of your own fund. You need to ensure the fund is structured correctly; meticulous records are kept, and meet all reporting requirements. It’s important to note that even if you do get help, you remain legally responsible for the fund.

Q. Will I get better returns than the fund managers?

A. Fund Managers enjoy the advantages of pooling resources to lower costs and have access to wholesale prices for investment products that you maybe be paying retail price through your SMSF. They also get significant discounts on brokerage fees for volume, which can be disbursed over a large group of investors.

There are also running costs to be aware of which include audit and regular reporting requirements.

Q. How will switching to a self-managed fund affect your current super?

A. If you change funds this means benefits, services and fees change. You need to take into account insurances that you may have through super and compare costs.

Q. How can MAP help?

A. MAP offers a financial planning service for trustees of SMSFs through MGD Wealth - MAP's intra fund financial advice partner. They can assist with you with the following:

  • Placing your investments
  • Evaluating portfolio performance
  • Reviewing your trust deed and
  • Ensuring your fund has investment strategy in place

We can also refer you to a nominated SMSF administrator, who will attend to administration and compliance.

Q. Does MAP offer an investment product for my SMSF?

A. The Pooled Superannuation Trust accepts and manages investments for trustees of self-managed fund funds. Diverse investment opportunities include international and Australian shares, property, fixed interest and cash.

To find out whether a SMSF is right for you, please contact MGD Wealth - MAP's intra fund financial advice partner on 1800 640 055..