Industry and retail funds

  • Someone else runs the fund, the investments and the paperwork.
  • You choose from a menu of options.
  • Group insurance is often included.
  • Costs are mostly a percentage of your balance.

Self-managed super funds

  • You (and up to five others) are the trustees and are legally responsible.
  • You choose almost any investment allowed by law, including direct shares and business property.
  • Costs are mostly fixed (accounting, audit, ATO levy), so they are heavier on small balances.
  • You have to keep records, set an investment strategy and get an annual audit.

Questions to ask yourself

  • Do I have the time and interest to be a trustee? See SMSF trustee duties.
  • Is my balance large enough that fixed costs make sense?
  • Is there something I want to do that my current fund can’t?
  • Will I still want to run it at 80?

We will tell you if an SMSF is not right for you. Read is an SMSF right for you? or Book a no-obligation chat.

Quick answers

Is an SMSF better than an industry fund?

Not automatically. An SMSF gives more control but brings legal duties and fixed costs. It tends to suit larger balances and engaged trustees.

Sources

General advice warning. This article is general information only and does not take into account your objectives, financial situation or needs. Rules and thresholds change; check the sources above. Past performance is not a reliable indicator of future performance. Consider the relevant PDS and our Financial Services Guide and seek personal advice before acting. FinForce is authorised under Financial Force Pty Ltd AFSL 238337. Shay has been authorised since 18 October 2011.

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