There seems to be an unspoken guide that self managed superannuation funds trustees have to have millions in the bank to set up one of these. It’s not hard to see why this has become an thought as you don’t often hear those with less than a million talking about such funds. However, just because you aren’t a millionaire that doesn’t mean to say you can’t still set up a self managed super fund. So, just how much money do you need in order to set up a self managed fund? Read on to find out more.
A Million Is A Benchmark But Unrealistic For All Investors
While it would be ideal to have millions to play with it’s not always possible. People seem to think in order to set up a SMSF they have to have millions in the bank but that’s not the case. There also seems to be a rumour that over two hundred thousand will be required at least to secure a fund but again that’s not exactly accurate either. While it is an advantage to have hundreds of thousands or millions in the bank, those amounts are not needed when it comes to super funds. Some investors have less than fifty thousand in total assets. That’s interesting because it essentially means more people can look at these.
Forget About Having Too Little
People honestly think just because they don’t have a lot of cash it means a self managed super fund is out of reach. Maybe that was true a few years ago but now that’s not the case. It’s very much possible to set up self managed superannuation funds without the need to have thousands in the bank. Less is more at times and as long as you can continue to make contributions to the fund you shouldn’t have too many difficulties. Sometimes it’s easier to invest with a minimal amount so that if the worst should happen, you don’t lose everything. See more.
Know what you’re doing Before Setting up a Fund
However, while you don’t need a huge investment to set up a fund it’s vital that you don’t go into this blind. Far too many end up setting up a fund without knowing what’s really involved and end up with something that is less than impressive. It’s a problem and it’s becoming a bigger problem by the day. The truth is that more needs to be done before setting up a fund. A SMSF can be great but without you knowing what’s involved it can all go wrong. That’s why knowledge is key.
Be Confident When Setting Up A SMSF
Do you really know what you’re doing when it comes to a super fund? To be honest, there are far too many people who don’t know the basics and end up with a lot of trouble on their hands. However, it’s a misconception you need millions or even hundreds of thousands to set one up. It has never been easier to set up one of these funds and they are very neat and effective at the best of times also. Self managed superannuation funds are truly great and they are going to help in many ways also. Get more details at http://smsfselfmanagedsuperfund.com.au/smsf/