# Self Managed Superannuation Fund



## Fleeta (23 January 2005)

Hey Guys,

Do any of you operate a self-managed super fund? I am only 25 years old, but was thinking about setting one up due to the enormous tax savings (15% income tax and 10% CGT - as well as imputation credit refunds!). As far as I can see, the only drawback is that I can't access the money until I am 55, but do you think it is worth doing with only a small amount of money and adding to it as you get closer to 55. What kind of annual costs are associated with a self-managed super fund?

Regards,

Fleeta


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## clowboy (23 January 2005)

Fleeta,

I'm not sure how you figure on being able to access your money at 55 if you are only 25 now.  More like 65.

As for the economic's of it.

The less money you have in super the more you need to make PA to justify it.
The 15% contibution tax will also work in a regular super fund as will the Co-contribution scheme.

These both depend on your anual income for efectiveness.

Co-contribution phases out at 58K from memory and the 15% tax break phases out at around 100K

The natural advise is see a finacial planner.

In terms of the cost of managing a SMSF........

Between $700-$1100 to set the super fund up.
Anual costs are generally scaled depending on number of investments which are defined diferently depending on who you go with.

Some may consider each parcel of shares as one investment.

An anual audit fee of around $500 applies and then account keeping fees scaled to number of investments apply.

My SMSF works out at about $500 per annum for the first 3 investments.

They will generally advise $100k as a minium for a SMSF but as I say it depends on what returns you can generate.

Hope this helps


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## GreatPig (23 January 2005)

clowboy said:
			
		

> They will generally advise $100k as a minium



I have seen some people suggest a minimum figure of up to $400K for it to be really worthwhile.

GP


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## clowboy (23 January 2005)

It really all depends on what returns you can make.

The biggest thing is that all the things Fleeta is trying to achieve can be done with any super fund.

(quote) but was thinking about setting one up due to the enormous tax savings (15% income tax (quote)


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