If you are thinking about saving for retirement, one of your best options is a self-managed super fund. This is a retirement account that you manage on your own, and that is set up to benefit you (or possibly your dependents) in the event of your retirement. Although this is a great way to save for retirement, they aren’t for everyone, and these accounts differ from a traditional trust in many different ways. Here’s what you need to know before setting up your fund.

What is a trust fund?

In a traditional trust, the money is managed by someone other than the trustees. For example, a retirement or superannuation fund that is managed by your employer would fall into this category, because you cannot touch the account at all until you retire. Although these accounts can be very convenient because they are managed for you, they don’t give you the same level of flexibility that you would get with a self-managed super fund.

What’s the difference between a self-managed super fund and

With an SMSF, you are responsible for investing and handling the funds in the account, so if you have a considerable amount of financial knowledge, you may get more out of an SMSF than other types of funds.

However, there are many other factors to consider. For example, with an SMSF, you bear all compliance risk, which means that you need to be aware of all legal regulations that surround your account. You also are not eligible for any dispute assistance or compensation in the event of fraud or theft. You also can only have a total of four trustees on the account, which is something to consider strongly if you have a large family.


There are many benefits to a Self-managed super fund, however, they are significantly more hands on than a traditional super fund.

Before setting up an SMSF, it is important to consult with a financial professional to make sure that you are fully prepared for the responsibility of this type of account. They can go through all of the particulars of the account with you and make sure you are fully informed. Then, you will need to create a trust deed, appoint your trustees, and register the trust with the ATO. From there, you will need to attach a bank account to this fund via the ATO, and transfer your current superannuation so that it goes into this account. From there, you are all set up to start investing. Make sure to fully research your investment options before making a decision, so you can make sure that you get the most out of your self-managed super fund.

BIS Cosgrove have a range of SMSF specialists on hand to help you make the best investment decisions for your situation. Get in touch with us today!

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