Advantages & Disadvantages

As with every new investment you must consider the Pro’s and Cons to it, so we recommend talking with ourselves as well as an accountant for a second opinion before entering into this style of fund.

Advantages
•    A SMSF gives you total control over what you invest in and when.
•    Possible tax advantages, depending on your financial position, should out way the costs to set up the initial facility; however, it’s wise to speak with a professional before setting up a SMSF
•    Borrow within the fund to allow you to buy residential or commercial property

Disadvantages
•    SMSF funds are not new but there is some new legislation governing what can and cannot be done within the fund. This has like always, bought out the sharks in the industry. The costs to set these up vary, from $3,000 to $30,000… so do your homework. At the wHere group we have various experts in their field to help us set these up, come talk to us to see if you would suit this style of fund
•    SMSF funds have to have extra tax returns done annually along with and annual audit. Hence the ongoing fees can be a lot higher than usual. We suggest a fund with a minimum of $100,000 to start with. This can be singular or a combined fund, husband and wife etc
•     Legislation behind these are very strict with matching penalties. You must confident your fund is compliant every year.
•    As governments change, so too can the legislation. The important decision you make today could be affected by the politician of tomorrow, so like anything, go into a SMSF with your eyes wide open with a game plan in mind.
•    A SMSF gives you total control over what you invest in and when.

Like to know more?

Contact us to arrange an obligation free consultation.