Earlier this month, the the SMSF Association released their research report on the ‘Cost of Operating SMSFs 2020’. No doubt the purpose of this was to provide guidance and insight regarding the cost-effectiveness of self-managed superannuation funds (SMSFs).
While everyone’s situation is unique, it does serve as a useful tool in deciding on whether an SMSF is right for you.
The research updates a report previously prepared by Rice Warner for ASIC in 2013. For this report, Rice Warner has also been given access to anonymised expense, cash flow and balance information for approximately 100,000 SMSFs. This has allowed them to consider actual costs incurred.
Some of the findings in relation to the range of costs for SMSFs are:
Be sure to do your own research and understand the limitations of this report in comparing the options relevant to you. In particular fee rebates or subsidies cannot be captured as part of the comparison with APRA regulated funds.
Pete is the co-founder and oversees the investment committee for Pekada. He is a qualified financial planner with 14 years of experience. Based in Melbourne, Pete is on a mission to help everyday Australians achieve financial independence and the lifestyle they dream of. Pete has been featured in Australian Financial Review, Money Magazine, Super Guide, Domain, American Express and Nest Egg.