SMSF: Costs versus performance
.. the bigger the balance, the better the performance during the financial years examined.
One of the most
interesting findings in a new tax office report - Self-Managed Superannuation
Funds - A Statistical Overview - is that ..
This finding is perhaps not surprising given that larger SMSFs typically have markedly lower costs - as a proportion of their assets - than their smaller counterparts. And larger SMSFs can afford to spend more on professional financial planning and tax advice.
Based on SMSF tax and regulatory returns, the ATO estimates that in 2009-10, the average rate of return for SMSFs according to asset size was:
These returns should reinforce to anyone considering whether to setup an SMSF that asset size and costs really influence the feasibility of having your own fund. (The cost issue was discussed by Smart Investing in last week's blogs mentioned above.)
By Robin Bowerman
24th April 2012