Is an SMSF right for me?

Smsf expert

Many people are interested to become an SMSF member because it is a great investment to prepare them for their retirement. However, while there are many benefits to SMSF, there are also a lot of things to consider before you decide to jump into this venture. You are required to assess your financial situation, your objectives, and your personal needs.

There are many ways that can help you decide whether SMSF Loan expert is suitable for you. However, in this article, we will discuss the most relevant ones.

1. Am I prepared to take an active part in my super fund?

People who want to be an SMSF holder is looking forward to controlling their super for their retirement wealth in the future. They are required to make wise investment decisions for their funds. As such, you need to devote some of your time to manage your SMSF. While you have other trustees that will help you in your SMSF journey, you would be accountable for its operation.

2. Am I responsible enough to follow the SMSF rules?

SMSF trustees are required to develop and administer their investment plan as part of the SMSF requirement. They also need to abide by the strict SMSF rules as failure to do so would disqualify one as a trustee. 

If you feel like you can’t comply with SMSF requirements, you are free to hire a financial adviser to support you. You can also educate yourself by enrolling in available online courses offered by the Australian Taxation Office (ATO).

3. Do I have enough funds?

If you want your SMSF to be profitable, you need at least $300,000 as starting balance. With this amount, rest assured that it will grow as time goes by. Take note though that SMSF requires an independent audit, income tax return, investment fees, and ATO fees. You can hire an SMSF specialist to help you manage and comply with the fund requirement.

4. Am I willing to educate myself with handling compensation, dispute, and complaint resolution?

Complaints and disputes are inevitable in an organization. You need to expect this situation to happen once you become an SMSF trustee. Since legal conflicts usually happen in SMSF, you have to educate yourself with the various courts or tribunals that you can run to in case these scenarios happen to you.

5. Should I consider getting Insurance?

Most SMSF trustees are insurance holders. This is because SMSF tackles a big amount of money and investment. They must be protected just in case the worst-case scenarios happen. You should ask professional insurance advice in dealing with roll overs and in setting up SMSF as a whole.


If your answers to the foregoing questions are “Yes,” then SMSF is right for you. It means that you are ready in taking the risk as well as the benefits that come with being an SMSF trustee. 

If you are still undecided, an SMSF adviser would be of great help in giving you the best insights with SMSF. He will help you assess whether or not this venture is suitable for you.