Q. I want to have my own SMSF. Is there a minimum amount needed to start one?
A. As such, there is no minimum required but the cost of setting up an SMSF means that if you have assets of less than $200,000 it might not be cost effective. Apart from this, having your own SMSF incurs certain legal obligations that you might find onerous. It is not a decision to be taken lightly.
A. For some people, having more control of their assets is the most important factor for them and they might be looking at setting up an SMSF even if there is no major financial benefit involved. However, SMSF’s are one of the most complex areas of financial planning and we do recommend you talk to us first to consider if one is the right thing for your financial situation.
Q. My friend has told me to rollover my Industry Super to a Personal Super. He reckons it’s cheaper. Is that correct?
A. Before doing anything you should consider what result you want to achieve and why you are considering changing from your Industry Super. Are you unhappy with the level of service? Would you like to invest in more aggressive assets or is the range of investments too narrow for you? Is there a particular kind of insurance cover not available on your current platform?
A. As with anything, there are pros and cons. Moving to a Personal Super could be cheaper and you could get much more comprehensive insurance cover. However, Industry Supers provide some types of insurance cover without underwriting which, for some people with medical issues is an important consideration.