We’ve all heard about the self managed super fund and the fact that it’s becoming the most effective type of superannuation funds in Australia. The SMSFs hold one third of the total superannuation funds in our country and are especially popular among people who are planning their retirement and among those who are highly engaged with their superannuation. The most obvious benefit from the SMSF is the flexibility and the total control every member has over their fund. This means that even if you get help from a financial adviser, lawyer or any other kind of professional, you’ll be still the only one responsible for all the decisions made by the fund. The purpose of the SMSF is to provide its members with benefits during their retirement years, so if you have no knowledge in terms of finances, make sure you make some research on SMSF providers that will help you set up your fund for the future.
Before you choose your SMSF provider, get familiar with their policies and their fees. It’s crucial that you understand all the information they will provide you with. Make sure that the provider you’re going to choose is experienced and reliable. They should respect and value the professional relationship and commit to protect all the private information from their clients. But remember, in certain situations they may disclose some personal information if it’s required or authorized by the law.
Also, it is imperative to understand how each provider structures their ongoing fees for administration and reporting. Unless otherwise specified, all fees will be levied by the SMSF provider for the services outlined in the agreement you’re going to sign. Note that ongoing fees may sometimes be influenced by the member’s age, the number of assets they own and the total value of the fund.
If while making your research you come across some SMSF providers that have been on the marketplace for less than two years, be very careful, unless the individuals working there have been in the super industry for a long time. When it comes to the services, some providers will offer you the “complete service package”, but think carefully before you sign on for one of these packages because they can be really expensive. Others may give you the liberty to choose which services you need the most and pay just for them.
In the end, the agreement you sign with the provider can be legally terminated by either you or them by providing 30 days notice in writing, normally without any additional fee. The provider on the other hand can also terminate the agreement immediately if you fail to pay the fees and the services provided by them.