How Do You Work Out The Cost Of Running Your Super Fund?

Self managed super fund is a proven method for effective saving for retirement. It is a way for saving for your retirement days, like most of the other funds. But setting a super fund gives you the possibility to keep track on your savings. It is not only the increased control the main advantage of investing in your financially stable retirement future, here’s the possibility for investing and growing the financial assets you invest. Due to the great flexibility and control, a growing number of Australians have set a self managed super fund, and there are many on the way to set their super fund for the first time.

As a relatively new trend, many are willing to give it a try. Of course, there are many questions that people need an answer for. Understandably, people are concerned about how much setting and running a super fund will cost them. If you are setting a super fund for the first time you certainly want to know how much you ought to invest in. For this reason, you need to you your homework beforehand in order to learn about the basic ATO rules.

When it comes to calculating the approximate cost for setting and running a super fund, what you need to know is that there are many factors that come into play. The main factors that you need to consider are:

• Your goals
• Your level of involvement
• The time you are able to separate

Also, here are some examples based on the ATO statistics:

The average OER (operating expense ratio) for SMSF is 1.03%. For instance, if your fund amounts $992,000, it will cost you around $10,200. For better illustration, if you want to learn how much you will have to pay for the amount of money you plan to invest in a super fund, you can look at the average SMSF cost for the approximate size of your fund. In this way you will be able to calculate the approximate amount of annual fees you have to pay for operating your fund.

What you need to know is that the operating expense ratio varies depending how high your savings are. To illustrate, if you plan to invest $600,000 in your super fund, you will need to pay 0,25 expense ratio, or more specifically around %1500 for one year.

In summary, if you are setting a super fund for the first time, and you are inexperienced in this matter, it is recommended for you to find a good professional adviser. A good financial adviser is a person that will provide to you the best consulting services but won’t charge you a fortune in return.