Hey
@danishcookieBefore I start I would like to make it clear that this is not financial advice and it is nothing more than my own experience and travels. I also have zero affiliation with any of the providers I use.
I have been through both scenarios and am currently in category 1 (SMSF). Previously I was with Australian Super and they had the ability to trade shares although it was very limited in terms of only being able to trade the ASX300 (from memory), the platform was useless and there were limits on the spread which didn't suit me. The decision was then made to go the SMSF route, using an accountant to set it up, and I haven't looked back.
When the rollover was done, any shares I held with AustralianSuper were sold off which was frustrating but it is what it is. At the time it didn't occur to me to do a partial rollover to keep the life insurance aspect (thanks
@thevinnys) but if I had to go that route again I would definitely consider it. Also, the Mrs and I rolled both of our supers into our 1 new SMSF. I guess this makes it a super super haha
An aspect of having the SMSF that I wanted to take advantage of was the non-concessional contributions cap which from memory was about $330k for each of us -
https://www.ato.gov.au/Super/Self-managed-super-funds/Contributions-and-rollovers/Contribution-caps/. There will also be the future opportunity to use the super money to do other things, providing it meets the sole purpose test -
https://www.ato.gov.au/super/self-managed-super-funds/investing/sole-purpose-test/. Also, my SMSF is set up using a corporate trustee
"just in case ole Tyranno does something silly" -
https://www.ato.gov.au/Super/Self-managed-super-funds/Setting-up/Choose-individual-trustees-or-a-corporate-trustee/.
After setting up the SMSF there was a bit more work to do setting up everything else. The super payments have to go through someone (I think due to STP) and I use clicksuper -
https://clicksuper.com.au/super-funds/. I think it costs about $40 a year. There were also bank accounts to set up and then a share trading account. I already banked with Westpac so just kept using them, and the same with CMC Markets. When setting up the SMSF with westpac, I went the pov-pack route and just set up basic accounts - steering away from their BT Super managed thingy as it looked like a rip off with heaps of ongoing fees and traps. It also appears to have worked out well so far with CMC as it has access to foreign shares, although I have never purchased any -
I rang CMC yesterday to see if there could see any issues with the relocation and transferral but the short answer they gave was to contact the share registry (Automic) which I have done and am awaiting a response. Once I know more details of the new registry, i'll contact them (CMC) again to check.
It looks like CMC also use the custodian model (thanks
@sylau90) -
https://www.cmcmarkets.com/en-au/support/faqs/stockbroking-product/international-share-trading. Although it can get confusing sometimes, I have linked all 3 of our accounts into CMC and can easily switch between. Currently about half of my holdings are in the SMSF, and the other split between me and the Mrs. Yes, she is a very patient and understanding woman
Completing the W-BEN and W-8BEN-E forms were possible through the CMC platform, although I did have to do some googling to make sure I was completing it correctly, or at least to the best of my knowledge.
From memory, using an accountant to set things up cost around $2.5K-ish. I think it was about the same at the EOFY plus an auditors fee of about $600, but I would have to check. Also, my understanding is that any expense associated with the running of the SMSF can be paid from the SMSF. There are definitely pros and cons, but I think it all comes down to what suits the individual and their goals. I think there is definitely another element of risk with a SMSF, but provided it is calculated risk and one learns from ones mistakes, it can also be rewarding.
Apologies for the long-winded post, but I guess some things can't be captured in a sound byte (thanks
@malkazoid)
Good luck
@danishcookie!
