How much do I need to set up an SMSF?

A common myth in the accounting and SMSF sector is that you should have a superannuation balance of at least $200,000+ prior to establishing a Self Managed Super Fund (SMSF).

With Future Assist, thanks to technology, vertically integrated accounting and the growth of the industry, this is no longer the case.

Younger Australians with smaller balances now have the ability to take control of their investment decisions inside of super, without the need to have such a large super balance.

In SMSF law, there is no legal minimum requirement for starting superannuation balances, however the reason for the large balance recommendations in the past has been due to the actual costs of administering and auditing the fund. The costs, in the past, simply did not merit or outweigh the benefit of having an SMSF.

Most retail or industry funds operate at around 1 – 2% fees of funds under management. These days, most Future Assist SMSF clients pay less than 1% of funds under administration.

Future Assist SMSF clients benefit from a fixed rate administration costing structure. This simply benefits trustees with a lower percentage running cost of their fund, as their fund grows in size. As opposed to industry and retail superannuation funds that operate on a percentage basis and cost more the more you accumulate.

Future Assist’s SMSF clients have access to it’s vertical integration model of in-house accountants working side by side with financial planners and legal services to provide one of the most economical cost structures in Australia for operating an SMSF. Future Assist clients also receive complimentary ongoing financial planning assistance outside of their SMSF.

Partnering with a financial planning firm like Future Assist gives you access to industry leading experience, which is reflected in our advice and the size of our client base.

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The above is given as general advice and is not specific to your circumstances or taking into account factors that may affect you. Thinking of acting on setting up an SMSF? speak to a licensed professional before making any decisions.