Business

Is it better to manage your own super?

Noel Whittaker
Noel Whittaker

THANKS to the volatility in world stock markets, the returns from many superannuation funds have been less than hoped for. 

This has led once again, to a spate of emails asking whether it's better to have your own self-managed super fund.

It's certainly a simple matter to start your own fund and any accountant or financial advisor would be able to refer you to a firm that specialises in handling the paperwork such as preparation of the Trust Deed. 

Usually the costs to run your own fund are at least $2,000 a year so you would need to have at least $200,000 to make it viable. 

Of course, when you start your own fund you still have to make a decision about investing directly or whether you opt for managed funds and let the experts make the decisions. 

If you prefer the second option it may be simpler to just use one of the master trusts that will almost certainly be offered by your advisor. 

Most master trusts include term deposits so it is possible to stay in the superannuation area and still access some of the high interest rates that are currently around.

I have no objection to anyone starting their own fund, but you need to clearly understand what you hope to gain by doing so. 

If you believe you are a better judge of asset allocation, or choosing shares, by all means go ahead. But you would need a good track record in this area to justify the decision - if you get it wrong you may well find that your performance is worse than the full time fund management professionals. 
 

Topics:  money, superannuation


Stay Connected

Update your news preferences and get the latest news delivered to your inbox.

Loaded gun found after driver allegedly speeds away

A 24-year-old man has been charged after an incident in Maroochydore.

Deception Bay man charged over alleged offences.

Burpengary man charged after defrauding over $1.3million out of investors

Wood and brass judges gavel on a law book

A 43-YEAR-OLD Burpengary man has been charged with fraud.

‘Too late’ to save backpacker tax damage

Dave Fairweather and mother-in-law Jane Stodhart from Stodhart Family Farms aren't happy about the new backpacker tax.

‘Too late’ to save backpacker tax damage

Latest deals and offers

Man steals motorbike, threatens others with knife

SUNSHINE Coast Detectives have charged a man who allegedly threatened a number of motorists this morning in the Kawana area.

Loaded gun found after driver allegedly speeds away

A 24-year-old man has been charged after an incident in Maroochydore.

Deception Bay man charged over alleged offences.

Burpengary man charged after defrauding over $1.3million out of investors

Wood and brass judges gavel on a law book

A 43-YEAR-OLD Burpengary man has been charged with fraud.

‘Too late’ to save backpacker tax damage

Dave Fairweather and mother-in-law Jane Stodhart from Stodhart Family Farms aren't happy about the new backpacker tax.

‘Too late’ to save backpacker tax damage

MBRC to share the load with MBRIT in tourism arrangement

FAMILY FUN: Jasmine Parnham and Chloe Philpott have a spin at the 2014 Caboolture Family Fun Day.

COUNCILLORS voted to partner MBRC and MBRIT for events.

Martin Jonkers Motors invests with $4m renovation

UPGRADE: Ray Jonkers looks over the plans for the $4 million renovation for Martin Jonkers Motors.

The $4 million upgrade is expceted to be finished by Christmas.

The best retro movies of the week? May 27 - June 3

Gregory Peck Photo Contributed

This week TV fan get to see Tom Cruise in a 1980s classics

Barnaby Joyce talks Johnny Depp's dogs in Tweed

Deputy Prime Minister Barnaby Joyce talks about Johnny Depp's dogs Pistol and Boo...

Billy Slater talks Origin Team

Queensland Origin great Billy Slater.

Queensland Origin great Billy Slater talks about this years team and his return to...

Road rage caught on Dashcam

Attack with a baseball bat caught on Dashcam

Video of a violent road rage incident in Orange last December.

Own Sunshine Coast property? You’re about to make money

UP AND UP: Property owners are likely to win from rent and price increases but tenants and first home buyers might not be so happy. Photo: Brett Wortman / Sunshine Coast Daily

Good new for property owners, not so good for buyers and tenants.

Sale nears on last large block of land in Coolum

The 43.37ha property on South Coolum Rd has sold.

South Coolum Rd property to be land banked