Small Business and SMSF



Owners of small businesses and people with an SMSF (aka self-managed super fund) are often very similar by nature. They both prefer to be in control, they both like saving money, they both need to be nimble with decisions, and both enjoy higher returns as they are not part of a large corporate.


An SMSF gives you back what a corporate provider takes away – control of your investments. When you assign your superannuation to a corporate provider, you are allowing your money to be invested in their decisions and not your own. By having a self-managed super fund, you can select exactly where and how much of your money is allocated to specific types of investments. For example, if you believe it is a wise choice to buy shares in a specific company with your nest egg and choose to allocate 50% of your current fund to that, you can. The remaining 50% you may choose to break up into smaller, less risky investments to ensure you have a safety net in case the shares don’t perform as you thought they would.

Reduced Fees

Many people have different views about the ideal minimum balance to start up a self-managed super fund with – most ranging from $100,000 to $250,000. This suggested figure is recommended mainly because of reasonably high flat fee costs involved in the fund set up (although in the long run can be markedly less than that of corporate managed super fees). Some self-managed super funds will usually incur a set-up fee of $1,000 or more depending on how complex the fund is. An SMSF rarely has a percentage based ongoing fees which is why it attracts many people. Comparatively speaking, self-managed super funds don’t penalize you for growing your assets. Many managed super funds run by large corporates will increase your fees as your nest egg grows. So not only do you pay a percentage fee on your balance but the larger it gets, the higher the percentage is! Check here.

Otherwise Unavailable Investment Options

Many small business owners love the idea of flexibility, and this is why so people also love an SMSF. Within a self-managed super fund, you can invest in either direct investments or managed funds, and you can take greater control of your nest egg. You can hold cash in the bank, pieces of valuable artwork, property (with the possibility of gearing), Australian shares and possibly international stock investments. You may decide to have an adviser helping you with some or all of your investment decisions, or you may choose to make all of the investment decisions yourself. In reality, it is better to start with a professional assisting you and then as you learn more, you can start to make the educated decisions based on not only knowledge but experience too.


So, if you’re a small business owner that is looking to take control of your superannuation, an SMSF (self-managed super fund) could be very appropriate to not only suit your needs but your “financial personality” as well. More details in site: