Are You Ready To Self Manage?
1 December 2008
A self managed superannuation fund can give you much greater control over growing your retirement savings, but are you ready to self manage? Unlike other types of superannuation funds that give you limited options for investment and provide a balanced investment option, a self managed superannuation fund requires you to remain aware of where your money is invested and to make sensible investments if your superannuation fund balance is to continue growing. If you do not know how a superannuation fund works and you treat it as if it were like any other investment, you could soon find yourself in trouble.
Would a self managed superannuation fund benefit you?
Not everyone will necessarily benefit from using a self managed superannuation fund. If you are only intending to make very conservative investments, for instance, due to a limited knowledge of investment, you may be better off with other types of superannuation funds. Those who do not already have a large balance in their superannuation fund may also not benefit from the flat fees offered by some self managed superannuation funds, such as ESUPERFUND. As many superannuation funds, such as an industry superannuation fund, charge a percentage of your total balance as an annual fee, those with larger balances can benefit more from flat fees once the percentage based fees reach a certain amount. If you currently do not have a big enough balance where the percentage based fees you pay are larger than the flat fee of a self managed superannuation fund like ESUPERFUND, though, then you may be better off looking elsewhere unless you can make investment choices that will far outstrip those of any other superannuation fund.
Please click on our ESUPERFUND sponsor banner if you are interested in seeing what they offer to help start a self managed superannuation fund.
