How much do I need to Setup a SMSF?
So How much do I need to Setup a SMSF?
Well this is one of the questions I quite often get and we get it all the time.
00:10 Just how much do I need to set up a self-managed super fund and I think that's pretty important. It would depend on the self-managed super fund once you set up, it's gonna last you for a generation or your lifetime and plus also your family's lifetime.
00:26 The key thing about it is the self-managed super fund it's not like a superannuation account or a bank account we set up and then we forget about. Essentially, it's a family super fund so we can bring together all of our family alternatively our friends.
00:32 For example, we could have three or four friends who pull together all their monies from their industry and retail phones plus their SGC and super. And then suddenly go invest in perhaps Cryptos or startup companies or shares or do whatever they want even invest in property. Again how much do I need to set up? Quite often the statistics that you'll hear certainly from the industry and retail funds who certainly don't want you to take your money out of their funds to set up a self-managed super fund will say two hundred thousand dollars.
The way they determine that is they say well generally the average fee that we charge our members this round about one to one and a half percent of whatever their benefits are.
01:18 That's because we invest, we might have huge administration costs upfront but if you look the retail funds, they can have seven layers of charges. In a self-managed super fund your main charge is just to pay for your administrator in fact there's a couple of administrators you can do your own administration.
For example, McLeod.com.au you have a look at that software virtually it's next to nothing so it doesn't cost you anything.
01:40 We getting right to this story the industry and retail funds will tell you that you need to have a couple hundred thousand dollars, because on that basis that an average accounting fee is around about two to two-and-a-half thousand dollars. When they did that around about six or seven years ago, we've found that accounting administration fees have dropped down quite considerably. So, you needed to have an accounting fees administration for he said everyone on the same and an auditor which can get from maybe three to four hundred dollars.
02:05 If you're really just starting out it's not that much sophistication in your fund so should be pretty easy to set up. So, you're looking at around about maybe anywhere between a three hundred to a thousand dollars to administrative fund. Which suddenly means that it's not two thousand dollars it should be around two hundred thousand dollars it should be around about a hundred thousand dollars.
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