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How One SMSF Myth Is Holding You Back

Despite self-managed super funds being far from a new idea, for most Australians, they seem out of reach. However, with the launch of Stake Super, we are breaking the market’s misconceptions.

Australia has punched above its weight for a nation of only 25.7m people over the last twenty years. One of the main drivers of this power is our country’s superannuation system. At the end of 2021, Australia’s total pension funds ranked fifth in the world at approximately $3.9t, according to the Thinking Ahead Institute’s annual report. The U.S. was $49t; the UK was $5.4t, and Canada was $4.8t. In other words, pension assets per person sit at $148,000 for the U.S., $80,000 for the UK, $127,000 in Canada, and a whopping $188,000 in Australia.

Despite the significant assets held by Aussies, most choose to give up control. According to the Australian Taxation Office (ATO), less than 5% have a self-managed super fund (SMSF). And yet, their assets account for approximately 25% of superannuation investments. So, why are so few Aussies taking control of their most significant pool of assets?

At Stake, we believe this question is answered by looking at one mistaken assumption.

The Great Mistake

When it comes to self-managed super funds (SMSF), there is the assumption that you need at least $250,000. This, in turn, causes many young investors to believe their age puts a self-managed super fund (SMSF) out of reach.

The main reason Australians believe they need at least $250,000 to run a cost-effective self-managed super fund (SMSF) seems to be the accounting costs. Research conducted by Rice Warner showed that to operate a self-managed super fund (SMSF) with a traditional accountant, the average price per year for accounting was $5,000, but this doesn’t have to be the case.

Pricing You Into The Market

At Stake, the belief that you require $250,000 in superannuation to run a cost-effective self-managed super fund has been busted by Millennials. In fact, our average customer starts their self-managed super fund (SMSF) with as little as $105,000 in super, and our average customer age is 39. That’s 58% less than the average age reported by the Australian Taxation Office.

What’s so different about Stake Super that has allowed us to achieve this?

By adopting technology, Stake has brought down the costs of establishing and managing a self-managed super fund with Stake Super. We have automated the establishment process, annual accounting process, financial statements and reporting, and even included the independent audits in operating your self-managed super fund as part of our annual fee of $990. 

With access to 8,000+ U.S. and ASX stocks & ETFs, cryptocurrencies, property, precious metals, and more, young investors are taking control of their superannuation with Stake Super – Australia’s most hassle-free and affordable SMSF.

Sign up in 5 mins, and we’ll set up your self-managed super fund for you. Learn more about Stake Super here. Switching your SMSF to Stake couldn’t be easier, complete our SMSF transfer form in just 60 seconds.

This does not constitute financial advice, nor is it a recommendation that an SMSF may be suitable for you. Do your own research and consider speaking to a licensed financial adviser before making a financial decision. This article has not considered your personal circumstances, financial objectives or needs.

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Stakeshop Pty Ltd, trading as Stake, ACN 610105505, is an authorised representative (Authorised Representative No. 1241398) of Sanlam Private Wealth Pty Ltd (Australian Financial Services Licence No. 337927) ('Sanlam') and an authorised representative (Authorised Representative No. 1241398) of Airwallex Pty Ltd (Australian Financial Services Licence No. 487221) ('Airwallex'). Stake is not authorised by Airwallex under Airwallex’s AFSL to arrange for clients to be issued with securities as Airwallex is not authorised under its AFSL for this purpose. Stake is not authorised by Sanlam under Sanlam’s AFSL to arrange for clients to be issued with a non-cash payment facility as Sanlam is not authorised under its AFSL for this purpose. Stake SMSF Pty Ltd (‘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 a self managed super fund (‘SMSF’). When you sign up to Stake Super, you are contracting with Stake SMSF Pty Ltd who will assist in the establishment of a 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. Stakeshop Pty Ltd will also run marketing and promotions to you under. For more information about SMSFs, see our SMSF Risks page.The information on our website or our mobile application is not intended to be an inducement, offer or solicitation to anyone in any jurisdiction in which Stake is not regulated or able to market its services. At Stake and Stake Super, we’re focused on giving you a better investing experience but we don’t take into account your personal objectives, circumstances or financial needs. Any advice given by Stake is of a general nature only. As investments carry risk, before making any investment decision, please consider if it’s right for you and seek appropriate taxation and legal advice. Please view our Financial Services GuideTerms & ConditionsPrivacy Policy and Disclaimers  before deciding to invest on or use Stake or Stake Super. By using our website or service in any way, you agree to our Privacy Policy and Terms & Conditions. All financial products involve risk and you should ensure you understand the risks involved as certain financial products may not be suitable to everyone. Past performance of any product described on this website is not a reliable indication of future performance. Stake and Stake Super are registered trademarks in Australia.

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