Self-Managed Super Funds give you total control over your retirement savings. But they come with serious responsibilities. Here's the honest guide.
You have $250,000+ in super (ATO's breakeven threshold for fees). You want to invest in direct property or specific assets. You have time and interest to manage it. You understand investment basics. You're willing to comply with complex regulations.
Under $250K in super — fees proportionally eat your returns. You don't want admin hassle. You're not interested in investment decisions. You want insurance bundled cheaply (SMSF insurance is more expensive). You're a set-and-forget type — stick with an industry fund.
Setup: $1,000-3,000 (trust deed, corporate trustee, registrations). Annual: $2,000-5,000 (audit, accounting, tax return, ASIC fees). Your time: 5-10 hours/month on investment management and record-keeping. Factor it all in before deciding.
SMSF Books →The #1 reason people start SMSFs. You can buy residential or commercial property inside super, even using a limited recourse borrowing arrangement (LRBA). You cannot live in it or rent it to related parties. Commercial property leased to your own business is the main strategy.
Direct ASX shares and ETFs. Build your own portfolio with full control over buy/sell timing. No platform fees beyond brokerage. Franking credits received at 15% tax rate in accumulation, 0% in pension phase. This is where SMSFs often shine.
Crypto, gold, collectibles (with strict rules), private company shares, and direct lending. SMSFs can invest in almost anything with a clear investment strategy documented. Each asset class has specific compliance requirements — get advice.