Self Managed Superannuation Funds (SMSFs) are a tool for risk management, investment management, retirement planning and estate planning.
The benefits are control, tax effective investments, costs (for balances greater than $200,000), and flexibility.
Some of the disadvantages are a lack of skill, a lack of knowledge, not to mention the time involved in managing a SMSF.
There are obligations and responsibilities to running a SMSF which means that there are risks that need to be managed. SMSFs should not be entered into lightly and you should remember the primary purpose of running a SMSF is to provide for your retirement, not for buying personal assets. If not run properly the penalties can be devastating to your retirement nest egg.
Your Australian Advice Network adviser can help you identify if a SMSF is necessary to achieve your purposes or not and assist you in managing the burden of operating an SMSF if you require one.