The costs of running an SMSF

We all need to keep an eye on the costs associated with super. After all, the less you pay in fees the more you’ll have in retirement. So when it comes to self managed superannuation funds (SMSFs) what costs are involved?

Three types of costs

SMSFs generally fall into three categories:

1. Set-up costs

Several one-off costs are involved in establishing your SMSF. They include costs for preparing your fund’s trust deed, establishing a company (if you choose a corporate trustee structure) and registering the fund.

2. Ongoing administration costs

The administration costs associated with running an SMSF are recurring and can include compliance, general administration and audit costs.

3. Portfolio costs

Investment charges, broker and professional advice fees are considered portfolio costs. Financial planners typically charge a flat fee, an hourly rate or a percentage of funds under advice. These fees can vary depending on your account balance and how often you seek advice.

How your fund’s structure affects cost

When setting up your fund, you’ll need to choose an individual trustee or a corporate trustee structure. It’s a key decision when setting up your fund and will affect your fund’s set-up costs and the way it needs to be managed.

Generally you’ll pay more to establish and maintain a corporate trustee structure but one of the benefits is that you may have less paperwork in managing your fund down the track.

Where can I find out more?

If you’d like to find out more about the costs associated with running an SMSF speak with your financial adviser or call us on 131 267 Monday to Friday from 8am to 8pm and Saturday and Sunday between 9am and 5pm AEST.

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© AMP Life Limited. This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, AMP does not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, AMP does not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.