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This week on Money and Investing, Madeline Morgan and I talk about self-managed super funds (SMSFs) – what they are, who they’re for, and how to set them up the right way.
1. What Makes SMSFs Different
Unlike traditional retail or industry funds, SMSFs give you full control over your retirement savings. You become the trustee, decide where to invest, and manage your own super growth strategy.
2. Why More Australians Are Switching
With over 42,000 new SMSFs established last year and assets now exceeding $1 trillion, more Australians are turning to SMSFs for flexibility, transparency, and better control. The decline in trust toward large super funds, slow service, and poor investment returns are driving this shift.
3. The Benefits and Responsibilities
Madeline explains that while the setup involves some effort upfront, the long-term benefits are significant. You gain direct access to investments, fixed annual costs (rather than percentage-based fees), and freedom to diversify your portfolio. However, it’s essential to manage compliance, audits, and paperwork correctly.
4. Who Should Consider an SMSF
An SMSF suits those with a solid super balance (often $250k or more) and a desire for greater control. Madeline highlights the importance of understanding your “why”—whether it’s flexibility, investment diversity, or long-term planning. Younger investors can also start small and grow over time.
5. Avoiding Common Mistakes
Andrew and Madeline warn against “cheap online setups” that skip essential steps like trustee structure or insurance considerations. Many who go the DIY route end up with compliance issues or missed coverage. The best path? Work with licensed professionals who can guide you through the process smoothly.
6. The Path to Control and Confidence
Taking charge of your retirement means making informed decisions early. Madeline and her team help clients build SMSFs correctly from day one—saving time, money, and future stress.
As Andrew says, “If you’re going to do something, do it right the first time.”
or more Info about Money and Investing, you can go to the podcast; The Wealth Playbook: Your Ultimate Guide to Financial Security; and The Wealth Playbook by Andrew Baxter – Audiobook, which is on Audible.
Disclaimer: Wealth Magnet Pty Ltd (ABN 52 618 868 830) trading as Australian Investment Education is a Corporate Authorised Representative (CAR no. 1255231) of Grange Financial Services Pty Ltd (AFSL No. 488609).
The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.
