DIY Super

In recent years Self-Managed Super Funds (SMSF) or Do It Yourself Funds (DIYF) have become increasingly popular, becoming the fastest growing section within the superannuation industry. There are now some 300,000 such funds in existence (increasing by 2,500 each month) with about 560,000 members who control $135 billion, representing well over 20% of Australia's superannuation assets.

What is a self managed super fund?
A self managed superannuation fund comprises four or fewer members, where the Trustees and Members are usually the same person or people. A SMSF or DIYF is regulated by the Australian Taxation Office.

Trustees/Members are actively involved in running the fund and make their own investment decisions. They may seek external professional advice if they consider it appropriate.

What are the benefits of a self managed super fund?
These are many and varied, and will coem down to your own situation. However here are a few...

* It puts you in control
* Choice of investments, including alternative assets and integration (within limits) with personal investments
* Lower management costs and no entry and exit fees
* Flexible retirement income options
* Tax advantages - SMSF's only pay 15% tax on the taxable income of the fund
* Estate planning - your family can benefit

How much money do I need?
Most experts recommend that at least $100,000 for a Self Managed Super Fund if you have stopped contributing, and at least $50,000 between the members if you are still contributing regularly.

The annual costs involved in running a DIY Fund will vary from fund to fund depending on the number of transactions and the skills of the Trustees/Members. The fund's accounts must be independently audited and there is also a $45 regulatory fee to the Tax Office. Most people will also elect to pay a professional for preparing the fund's accounts and tax return.