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.

CCTV footage leads to arrest of woman for theft, drugs

Quick action by retail staff lead to a woman being arrested

Village masterplan push: Newrybar’s future up for discussion

COMMUNITY MASTERPLAN: Newrybar resident and business owner Paul Moses is chairman of the Newrybar Association which is trying to establish a masterplan for the historic village to put to Ballina Shire Council.

Community group wants to prepare masterplan for village

Family’s desperate plea to save Sienna from deportation

Kai Tippett and Hayley Niedzielska with Sienna Tippett, 6, of Lennox Head, are appealing to the Australian Government not to deport them.

The six-year-old's mystery illness could see the family deported

Latest deals and offers

Why the shark barrier at Lighthouse Beach has stalled

CONSTRUCTION of the controversial shark barrier of Lighthouse Beach has stalled despite the project officially starting more than a week ago. Here's why.

CCTV footage leads to arrest of woman for theft, drugs

Quick action by retail staff lead to a woman being arrested

Village masterplan push: Newrybar’s future up for discussion

COMMUNITY MASTERPLAN: Newrybar resident and business owner Paul Moses is chairman of the Newrybar Association which is trying to establish a masterplan for the historic village to put to Ballina Shire Council.

Community group wants to prepare masterplan for village

Family’s desperate plea to save Sienna from deportation

Kai Tippett and Hayley Niedzielska with Sienna Tippett, 6, of Lennox Head, are appealing to the Australian Government not to deport them.

The six-year-old's mystery illness could see the family deported

Parents' worst nightmare: Daughter, 6, could be deported

The family of six-year-old Lennox Head girl Sienna Tippett have applied for Immigration Minister Peter Dutton to intervene so she doesn't get deported for having an undiagnosed mystery illness.

A Northern Rivers family has started the fight of their life.

Sausage Kings snag Plateau award

WINNERS: The team from Alstonville Quality Meats accept the Alstonville Wollongbar Chamber of Commerce Business of the Year award. From left: Bruce Hall, owner Ashley Thomson, Thomas Brown and Lachlan Thomson.

Alstonville's Sausage Kings are now the business kings

Pokémon Go makes Ingress into Clarence Valley

Pokemon Go player Dan Optland is pictured in the game w ith a "Pidgey" Pokemon he lured to a Pokestop at the Clarence Valley Conservatorium.

Pokemon Go Pokestops evolved from hard work of unsuspecting friends.

Rob Kardashian 'neglected' by Blac Chyna

Friends say they are now 'back in love'

Isla Fisher: I don't like talking about my private life

Isla Fisher shut down TV hosts when they asked about her husband

Mariah Carey: I 'can't believe' Prince has gone

'Prince was one of the best people I've met'

Joe Jonas' 'tough' pals

Joe Jonas' pals are 'tough' with his potential partners

The Bachelor wash up: bacon, plank offs and that white rose

Richie Strahan, second from left, with bachelorettes Eliza, Faith, Noni and Janey in a scene from episode one of the fourth season of The Bachelor.

RICHIE Strahan meets some beautiful, and colourful, bachelorettes.

You can own this Queensland town for just $1

Yelarbon

Unprecedented auction of town's business centre with no reserve

Work starts on $15M Caloundra apartment building

Turning the first sod at the Aqua View Apartments site in Kings Beach are (from left) husband-and-wife developers Alex Yuan and Stella Sun with construction company Tomkins director Mike Tomkins and Councillor Tim Dwyer.

Developers excited about addition to Kings Beach skyline

Plans revealed for 1500-lot 'master-planned community'

Precinct will be bounded by Boundary St and Shoesmith Rd

Ecco Ripley sales run sparks prime release

MOVING IN: Sekisui House has announced the release of more residential blocks at Ecco Ripley.

Sekisui House is preparing to unveil more land at Ecco Ripley

Massive residential 9-storey high-rise hit by delays

An artist’s impression of the eight-storey-high apartment complex that Bernoth Holdings wants to build in South Toowoomba, next to the City Golf Club.

Developer struggles to get approved high-rise development started