SMSF can be a great way to take control of your finances, however, there is also a lot of complexity even with the simplest funds. Each member of the fund is a trustee and this involves a lot of financial skill, administration and legal knowledge.
We believe there are three essential elements to running a successful SMSF. The owner of the SMSF must have:
- the desire to be a trustee and adhere to the strict rules;
- the financial skills and time to manage the investments;
enough money in the fund to make the set up and yearly running costs worthwhile. Although there is no definitive amount prescribed, it is generally suggested more than $200,000 is a starting point. We consider the first two elements as more important.