I was talked into changing my standard Super into a Self Managed Super some years ago for the main purpose of buying an investment property through my super. But as it worked out I didn't buy a property as i became uncomfortable with the financial planners who were also selling the properties. I have since left their services and are using another company to monitor my SMS. I don't have the skills to manage it myself. I was told a few years back that my Super wasn't large enough to justify a SMS and it appears to me to be right - it seems I am paying more fees that what the super is earning. Is it possible to change back to a standard super? - I have less than $400k in it
27 August 2015 |
Narre Warren North, VIC
I am sorry you have had a bad experience in receiving financial advice to date.
To answer your question - yes you can change from a SMSF back into a "standard super" and there are many options for you.
The first question you have to ask yourself is if you want to have direct assets such as property and shares and control your investments (at least your investment choices) - the number one reason why clients go down the SMSF path. If you have an alternative super fund structure then the investments can be a combination of direct shares and managed funds.
The next thing you should be clear about is what is the total fee you are paying to have your current SMSF. It doesn't have to be expensive - it may be that you are feeling uncomfortable because you are unsure about fees and the services you are receiving. It could be, you just haven't the right team of people to guide you in your SMSF.
We have wound up SMSFs because the client was not suited to the structure but at the same time we have helped clients find the right SMSF service.
Please try again to seek financial advice and listen to your intuition. You need to understand your Financial Planner's advice philosophy, their services and how they generate their income. You also need to understand fully your options before making any changes and the process involved and timeframe.
Hope that's helped.
By Michelle Tate-Lovery CFP®