Is running an SMSF harder than you thought it would be?
If you're like most Australians who open a Self Managed Superannuation Fund, you've probably found that it's not as easy as you first thought.
You have to keep up with all the complex rules, make the right investment choices and carve out the time required to run an SMSF properly. Frankly, that stuff is hard. In fact, more than 1 in 3 SMSF trustees surveyed said they found it “very difficult" to keep on top of it all.
Why is it so much harder than you thought? And more importantly, what can you do about it? We'll answer the second question in just a minute. But first, there's something important to understand.
Think about why you first opened an SMSF.
Maybe you'd heard it'd be a great way to "build your wealth" and that it could help you do things like buy a property for your kids. Maybe you knew that you could do a better job of choosing your investments to get bigger returns or you just wanted the benefits like control over your money, or choosing when and where to invest.
The truth is, most of what your hear about SMSFs aren't even true! To show you why, we've gathered three of the most common SMSF myths below.
Myth #1: My accountant will take care of my fund for me, so there's no hassle.
Fact: Actually, no. Accountants are extremely important but very few of them have the infrastructure to run investment and superannuation strategies for all their clients. That means a lot of the work falls on you.
The very best accountants know it takes a team to be successful, and a good accountant will always recommend you get expert help with your SMSF rather than do it yourself.
Myth #2: SMSFs give me better performance than a regular super fund.
Fact: According to ARPA, in the 2014/2015 financial year, non-SMSF funds increased an average of 11.6%, nearly DOUBLE the 6.09% return of SMSFs!
That's because most people with SMSFs don't know how to invest them properly so they leave a lot of money in cash or shares that they're familiar with but aren't that great a choice.This mistake can literally cost you hundreds of thousands of dollars!
Myth #3: SMSFs aren't that hard to manage, and the rewards outweigh the costs.
Fact: The average SMSF trustee spends 88.8 hours a year working on their SMSF, nearly 12 days of full-time work! That's literally a holiday you're missing out on every year because you're spending it trying to manage an SMSF. Not only that, but more than 1 in 3 SMSF trustees say it's hard to keep up with the complex rules and knowing how to invest right.
So, what can you do if you have an SMSF Well, let's be clear on one thing: You can get excellent results with an SMSF. The problem isn't SMSFs themselves. They do offer good flexibility and control of your investments.
The problem is the mistakes made by people without enough experience or time.
But what if you had expert help that could give you the experience you need, and save the time you didn't have? Someone you could trust to take care of your SMSF advise you on what to do, do it for you if needed or answer all the questions you have?
In our SMSF service, we give you expert advice that takes the hassle out of opening and managing an SMSF.
Here's some of the things we can do:
And if you haven't set up an SMSF? No problem. We can help assess your current superannuation and tell you whether you should or shouldn't open one.
This service is for you if:
In fact, we honestly recommend this service for anyone who is an SMSF trustee. SMSFs take up too much time and the risks of getting it wrong are just too big to just do nothing.
Don't worry, though. We've made it as easy as possible to…
Want to see if our SMSF Guidance Service can help you?
The easiest way for you to find out is to get a GeekPeek, our free, special financial check-up that will look at all areas of your financial health and tell you exactly where the problems are.
You’ll get a custom report on where the problems are, what you could get by fixing them.
Best of all, it’s totally free and no-obligation.