Are SMSFs cost effective?
It depends on what you do and how you do it. The more complex you make it, the more it is likely to cost. Sound familiar?
If you buy and hold assets such as cash and shares then it’s a simple solution. If you decide to buy and sell shares regularly then your broking costs go up and the SMSF becomes more expensive. If you want to borrow money and buy and sell shares or property, it just got a lot more complex and your costs go up. Talk to us and we can help you through this issue to design the SMSF for you and let you get on with thinking about your investments.
The key is that you need to design the SMSF to do exactly what you want it to do. Then weigh up the costs against the benefits.