Self Managed Super Fund Risks, Costs & Charges

HOME

SMSF

SMSF RESTRICTIONS

SMSF RISKS & COSTS

SMSF BENEFITS

SMSF TYPES

SMSF DEFINITIONS

TRUST DEED

ANNUAL ADMIN

SMSF AUDIT

INVESTMENT PLAN

PENSION CALCULATOR

CONTACT

Self Managed Superannuation Fund's Risks, Costs & Charges

Choosing the right superannuation fund as part of your overall individual investment strategy can be an effective way of achieving your personal financial goals. However no two superannuation funds are the same. You should speak to a licensed financial advisor before proceeding with any investment including superannuation, and in particular self managed superannuation. You need to understand the main features of all types of superannuation funds and request assistance regarding investing in a particular fund from a licensed financial advisor before making any decision.

There are risks, costs and charges in choosing to invest in superannuation and self managed superannuation. There are also risks associated with choosing particular investments – all investments are subject to varying risks and generally all change in value. Different asset classes perform differently at different times.

Every class of asset and each individual asset within a class have different risks associated with them. Whilst the following summary is not exhaustive, the ones mentioned below are the most significant:

Inflation: may exceed the return on any investment in a given period
Individual investment risk: Individual assets can fall in value for many reasons, such as changes in the internal operations or management of a fund or company we invest in, or in its business environment
Market risk: Economic, technological, political or legal conditions, and even market sentiment, can change, and changes in such market conditions can affect the value of investments in the fund
Interest rate risk: Changes in interest rates can have a positive or negative impact directly or indirectly on investment values and returns – for example the income return on a fixed interest security or the underlying cost of a company’s borrowing
Changes to superannuation law: Changes are frequently made to superannuation law, which may affect your ability to access your investment. Recent changes to Family law mean that your superannuation entitlement may now be split with your spouse, by agreement or court order, if you should permanently separate
Changes to taxation law: Changes can also occur to the taxation treatment of superannuation moneys, which may affect the value of your investment and ultimate benefits receivable.

There are also costs and charges associated with investing in superannuation. Here is a list of some of them:

Entry fees and or exit fees
Investment charges
Management fees
Administration/Accounting fees
Audit charges
ATO levy
Legal costs
Other costs

Finally, there is a taxation aspect of superannuation. The superannuation fund is, in general, subject to tax at the rate of 15% on the taxable contributions it receives and its net fund earnings.

SuperEasy Pty Ltd is not licensed to provide advice on investments, or legalities of the types of investments that you can have. SuperEasy® strongly recommends that you seek professional advice before making any investment choice or decision!

Copyright© 2000 - 2006 SuperEasy® Pty Ltd - ACN 092 141 083

By accessing and viewing www.supereasy.biz you agree
to be bound by the Terms and Conditions of this website.
SuperEasy® reserves the right to modify the Terms and Conditions at any time.
Please read the Terms and Conditions.