In part 1 we looked at points to consider before starting an SMSF. Here are more points for anyone thinking of becoming a trustee. As before, it's important to know what you're getting into and whether it suits you.
Flexibility and control. Run well, an SMSF gives you flexibility over the fund's investments, a tax strategy that fits its members, control over retirement planning and your own choice of insurance.
The real costs. The fees charged by industry and retail funds can be surprising. But trustees need to be realistic about the costs of an SMSF too: set-up, yearly accounting and audit fees, the ATO's supervisory levy, brokerage, adviser fees and more.
Estate planning and insurance. Trustees should review members' insurance every year. They also need to understand how the fund fits with each member's estate planning, and have the right strategy in place.
The need for advice. Keep an open mind about getting professional advice. Take time to talk with family, friends and trusted advisers.
You need to be comfortable deciding when, where and how the fund invests, or to work with an adviser who can help you. When in doubt, ask.
If you're a trustee, or thinking of becoming one, your accountant or financial planner can help you with these questions.