A SMSF give you control over your retirement planning but also comes with responsibility. It is not for everybody. Tax and superannuation law can be complicated and it is always recommended that you seek professional advice before establishing an SMSF.
An SMSF takes time to manage. As well as establishing the fund you need to create an investment plan, monitor investments and complete tax, accounting and audit requirements. You will need to stay on top of important deadlines, stay up-to-date with ever-changing legislation that will affect your responsibilities as the trustee. If you are no good with paperwork then perhaps an SMSF isn’t for you.
The costs of running a SMSF can be onerous if you only have a small superannuation balance. While costs can vary it is generally accepted that you will need around $200,000 in superannuation to justify the costs of establishing and running a fund yourself.
Creating and monitoring an investment plan. This can be a difficult task for those without investment knowledge and skills. If this is the case it is advisable to seek external advice and to schedule regular meetings to update strategy, review investment performance and perhaps alter the investments themselves.
These are only a few of the decisions that need to be considered before embarking on an SMSF. Some further considerations can be found here.