Note: Article updated in January 2018, and includes an extra table outlining fees for small and large SMSF account balances. This article includes the latest SMSF cost data released in January 2018 by the ATO, and selected cost data released by ASIC in September 2013. The next SMSF cost update is expected to be released by the ATO in January 2019.
Q: My wife and I are considering setting up a self-managed super fund. I asked two advisers for a quote on the set-up costs for a self-managed super fund with a starting balance of $600,000. The first adviser charges approximately $8000; the second considerably less — about $1500. Which do you think would be the better option, and fundamentally, is an SMSF the most cost-effective option for a couple with this level of savings?
A: You ask 2 questions: which adviser quote is the best option, and whether an SMSF is the most cost-effective super option for you?
I have structured my response into four sections:
- How do I calculate my SMSF fees?
- How do you compare the costs of different SMSF service providers?
- How much should an SMSF fund cost (including 2 tables that list average costs, and average costs for different account balance sizes)?
- What is the minimum cost-effective balance for an SMSF?