Self-managed superannuation is not for everyone.

The Australian Securities and Investments Commission (ASIC) has, through its Moneysmart website, issued a series of warnings for people thinking about establishing an SMSF and has released guidance for advisers who speak with people about establishing an SMSF (ASIC Information Sheet 274 – INFO 274).

The Australian Taxation Office has its own recommendations for those considering an SMSF. It has also released a consumer guide comparing SMSFs with other superannuation funds. The guide provides high-level comparisons across areas, including:

• Members and trustees

• Responsibilities

• Investments

• Insurance

• Regulation

• Complaints and disputes

• Fraudulent conduct or theft

The full text of the guide can be accessed here.

In summary, an SMSF is a tool which may be suitable for some investors but, like any tool, it needs to be utilised only where the circumstances of the user warrant its use. An SMSF has costs, requirements and risks, and these need to be weighed against any perceived taxation and asset protection benefits.

Rands Advisory Group can assist individuals in asking the right questions to help them make an informed decision.