Issues to Consider When Setting Up A DIY Super Fund

The prospect of setting up a fund that will make your post-retirement life comfortable is an option chosen by many people. Having slugged your way through to the twilight of your life, it is a tempting opportunity. This is the reason why DIY Super funds are becoming so popular. However, what many people don’t take into consideration is that having a Self Managed Super fund is a big responsibility to shoulder and there are considerable risks involved as well.

Time

The first and foremost thing to take into account is that you need to have a lot of time to be able to keep up with the investments that you are going to make. Lucrative opportunities open up all the time but if you are not alert and ready to pounce, they will slip right through your fingers. If you are have a lifestyle where you hardly have any time to spare then it is not a wise decision for you to pursue the option of setting up a DIY Super fund.

Trustee

Another thing to give a thought to is the role of a trustee that you would have to fulfill when you are in charge of the fund. Trustees have certain responsibilities and liabilities under the law which they have to adhere to. You would be required to maintain records and accounts, vary investments so that they reap the maximum possible benefits and meet the standards for accounting that have been imposed by the state.

Cost

The costs of setting up a Self Managed Super fund are estimated to be a minimum of $4,000 to $5,000 on average. Then there are maintenance costs that you would have to incur to keep the fund afloat and making a superannuation which would set off the costs easily. Unless you are making money on your fund, it is insensible to persist with it.

Loss

There is always the chance present that you could end up losing all the investments that you have made through the DIY Super fund. There is no guarantee that an investment will pay off and nothing is certain when you have undertaken a speculative venture. However, this does not mean that you shouldn’t give it a shot because many people have been able to reap the benefits of shrewd investments and adequate management skills that they put into their funds.

Only if you feel that you can address all these issues, then you should think about setting up a Self Managed Super fund.