For many professionals – especially those in the medical field – superannuation is more than just a retirement nest egg. It’s a key financial asset that, when managed right, can impact long-term wealth.
If you’ve ever felt frustrated by the lack of control over your super, a Self-Managed Super Fund (SMSF) might be the solution. But is it the right move for you?
What is an SMSF?
A SMSF is a private superannuation fund that gives you full control over investment decisions. Picture it like the menu at a fancy restaurant. When you have an SMSF you’re not limited to a set menu like others – you have access to the full menu and can pick and choose your favourite dishes and how large you want the meals to be. Bon Appetit!
Why do people choose an SMSF?
SMSFs have become a popular choice among high-net-worth individuals with large super balances. The main attraction? Control.
Some of the key benefits include:
- Investment flexibility: Want to invest in direct property, shares, term deposits, or even collectables like art? SMSFs offer more choices than standard super funds.
- Tax efficiency: With the right strategies, SMSFs can be highly tax-effective, helping you keep more of your hard-earned money.
- Cost advantages for larger balances: Many SMSF fees are fixed rather than percentage-based, meaning the larger your balance, the more cost-effective it can be compared to traditional funds.
- Estate planning benefits: SMSFs offer greater flexibility when it comes to passing on wealth to future generations.
Is an SMSF right for me?
While SMSFs offer unmatched control, they aren’t for everyone. Running your own super fund comes with responsibilities – you become the trustee, meaning you need to comply with superannuation laws, keep records, and manage tax obligations.
An SMSF might be worth considering if:
✅ You want greater control over your investments.
✅ You have the time (or the right financial advisors) to manage compliance and administration.
✅ You’re interested in tax-effective wealth-building strategies.
✅ You’re considering investing in business premises (e.g., owning your medical practice building inside your super).
Common Myths About SMSFs
❌ “SMSFs are only for the ultra-wealthy.”
While high balances make them more cost-effective, they are accessible to a wide range of people.
❌ “They are too complicated.”
While SMSFs come with responsibilities, working with the right accountants can make managing them much simpler.
❌ “You can invest in anything you want.”
While SMSFs offer flexibility, all investments must still comply with superannuation regulations.
How do I get started with an SMSF?
An SMSF isn’t just about taking control – it’s about making your super work harder for you. If you’re looking for flexibility, investment choice, and tax advantages, it could be a great fit.
But it’s also a serious commitment. Before making the switch, speak to an experienced advisor who can help you weigh up the pros and cons for your situation.
Ready to explore your SMSF options? Get in touch with our team to see if it's the right fit for you.
Megan is a Partner in Cutcher & Neale’s Specialist Medical Services Division and has over 20 years of industry experience.
Megan is an expert in the taxation field, with a niche specialisation in advising medical professionals.
