You are going to be responsible for making all of the investment decisions for the fund. Also, you are going to have to make sure that you comply with all of the super and tax laws. This is a big financial decision, and you need to make sure you are prepared to meet all of the requirements. Ask a qualified, licensed professional to help you compare SMSFs with your other options and to see if you can handle the requirements of an SMSF. Visit the Australian Securities and Investments Commission website for information about choosing a financial advisor.It is illegal to use your SMSF funds for anything other than funding your retirement.;
, SMSFs are different from other types of retirement funds. Learn the differences before opening an SMSF. The major differences have to do with members and trustees, responsibility, investments, insurance and regulation.SMSFs can have a maximum of four members who are trustees in the fund. Other super funds usually have no limit on the number of members.
SMSF trustees bear all of the responsibility for complying with laws and regulations. With other super funds, a professional licensed trustee bears the compliance risk.
With an SMSF, you can choose the investments. With other funds, you don’t have as much choice about how the funds are invested.
Insurance for SMSF trustees is optional and can be very expensive. Other super funds offer discounted insurance to their members.
SMSFs are regulated by the Australian Taxation Office (ATO). Other super funds are regulated by the Australian Prudential Regulation Authority (APRA).
 You will have to devote a great deal of time to managing your SMSF. In addition, be prepared for ongoing costs to run the SMSF. You will be responsible for operating the fund within the confines of the law. Therefore, you must familiarize yourself with tax laws for SMSFs, or you may find yourself having to pay fees and penalties. In addition, you must make investment decisions for the fund. Educate yourself on the restrictions on investments for an SMSF. Finally, the fees for an SMSF may exceed those for other kinds of retirement funds. Not only do you have to pay for financial and legal advice, but also each year, you have to pay for an independent audit, to prepare tax returns and to complete valuations.
Understand that you are in charge.
Compare SMSFs with other super funds.
Consider the costs, time and skills.
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