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What to Consider When Handling a Self-Managed Super Fund

self-managed super fund, also known as a SMSF, is a fund for your retirement and possible beneficiaries. However, as the name suggests, this is managed by you without the typical help others receive from their retail and industry super funds. So, should you be getting an SMSF? Before you go ahead and make this decision, consider the factors below.

5 Crucial Factors for Handling a Self-Managed Super Fund

1. You Will Shoulder Legal and Administrative Responsibilities

Because you manage your fund, you have to deal with everything regarding your funds. From developing strategies and even adhering to compliance, you will have to handle all of that on your own.

Aside from your own personal responsibilities, you will also have to handle any legal actions regarding your fund. This includes taxes and any other financial obligations to file and deal with. If you aren’t sure, be sure to do your research, or you can ask questions from experts (including financial advisers and accountants) to know what you need to deal with.

2. You Have to Be Active with Your Fund

Funds do not just optimise and grow themselves. Instead, you need to be active and make decisions to create changes to it. This means that you need to take charge of your investment decisions and be able to do that confidently. While being your own manager for your super does not mean you have to do it alone, it does mean you have to do the heavy lifting. It’s common for those with an SMSF to seek investment strategy advice from an experienced financial adviser.

3. You Decide the Structure

Whether you end up with a corporate or individual trustee structure – this decision is all up to you. If you are unsure of the benefits, you can speak to a professional and ask for advice. Whatever the outcome, you will need to decide and follow the responsibilities and guidelines of each specific structure.

4. You Need a Minimum Balance

To successfully and cost-effectively operate your SMSF, you will need to have a minimum balance of at least $300,000. This balance is also expected to grow and cover costs, including the trust deed, establishment costs, tax returns, audits and other fees. If you have a lower balance than this, managing your SMSF may still be possible. However, it may not be the most cost-effective decision.

5. You Don’t Have to Do It Alone

While it is true that a lot of the responsibilities and major decisions will fall onto your shoulders, this does not mean that you have to do everything alone. You can have a team work alongside you to make sure that you make the best decisions possible for your super. Aside from this, you can seek advice from a professional who is knowledgeable in this industry. They can be a third party who can give you insight into your SMSF – however, you need to be careful in choosing whom to work with and make sure they are reliable and can be given sensitive and confidential information.


Choosing to do an SMSF is a complex process, and it can take a lot of work. If you don’t have the knowledge, you may also experience a lot of obstacles and need the support of professionals to make many significant decisions. Don’t worry, though, because you can work with our team of experienced Financial Advisers.

Need financial advisers in Port Macquarie? Coastal Advice Port Macquarie has got you covered! We offer comprehensive services tailored fit to your every need, from young professionals to those in aged care in Port Macquarie. Call us or book online to secure your complimentary first meeting with our advice team today!

DISCLAIMER: The views expressed in this publication are solely those of the author; they are not reflective or indicative of RI Advice Group’s position and are not to be attributed to RI Advice Group. They cannot be reproduced in any form without the express written consent of the author. This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice. Newcastle Financial Planning Group, Central Coast Financial Planning Group, Sydney Wealth Advisers, Coastal Advice Port Macquarie and Coastal Advice Ballina Byron are subsidiaries of Coastal Advice Group Pty Ltd which is a Corporate Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.