Let’s bust 3 common SMSF myths

For a long time, self-managed super funds (SMSFs) were seen as something mainly for wealthy retirees.

Today, that's changing.

Lower admin costs, digital platforms and a growing number of self-directed investors have made SMSFs more accessible. They're still not right for everyone, but many of the old assumptions no longer hold.

Read on and rethink three of the biggest SMSF myths.

Myth 1: SMSFs are only for people over 60

Not anymore.

While the average SMSF trustee is still older, more younger Australians are setting up  SMSFs to take a more active role in managing their super.

According to ATO data, the average age of people opening an SMSF has steadily fallen over the past 15 years. Many new funds are now being set up by people in their 30s and 40s.

The key question is no longer about age. It's whether prospective trustees are comfortable taking responsibility for managing their super investments.

Myth 2: You need hundreds of thousands of dollars

There's no legal minimum balance required to start an SMSF.

Whether an SMSF makes sense depends on your balance, investment strategy and the costs of running the fund.

Unlike many retail and industry funds, SMSFs typically have fixed administration costs. That means their impact changes as your balance grows. Those admin costs can also be shared across up to six members of the fund.

Learn more in our guide to how much super you may need to start an SMSF.

Myth 3: Running an SMSF means doing everything yourself

Running an SMSF comes with extra responsibilities, but you don't have to do everything yourself.

Many trustees use an SMSF administrator to help with the setup, accounting, annual audit, tax return and ongoing compliance.

At Stake Super, we help simplify the admin, while you stay in control of your investment decisions.

So, are SMSFs right for everyone?

Not necessarily.

An SMSF gives you greater control over your investments, but it also means taking on trustee responsibilities.

If you're comfortable making investment decisions and want more flexibility over how your super is invested, an SMSF may be worth exploring.

A simpler way to manage an SMSF

We can help you understand what’s involved in setting up and running an SMSF.

Get started online today or speak to a Stake Super specialist.

This is not financial product advice, nor a recommendation that a self-managed super fund (‘SMSF’) may be suitable for you. Your personal circumstances have not been taken into account. SMSFs have different risks and features compared to traditional superannuation funds regulated by the Australian Prudential Regulation Authority (‘APRA’). Stake SMSF Pty Ltd, trading as Stake Super, is not licensed to provide financial product advice under the Corporations Act. This specifically applies to any financial products which are established if you instruct Stake Super to set up an SMSF. When you sign up to Stake Super, you are contracting with Stake SMSF Pty Ltd who will assist in the establishment and administration of an SMSF under a ‘no advice model’. You will also be referred to Stakeshop Pty Ltd to enable your trading account and bank account to be set up in order to use the Stake Website and/or App. For more information about SMSFs, see our SMSF Risks page.