Keeping industry super or retail super and SMSF at the same time

Is it possible to keep industry super or retail super and SMSF at the same time? The answer is yes.

Combining an Industry Super Fund (ISF) or a Retail Super Fund (RSF) with a Self-Managed Super Fund (SMSF) is an option that some individuals may consider for their superannuation savings. While having both types of funds can provide benefits, it’s important to consider the potential advantages and disadvantages before making a decision.

One potential advantage of having both an ISF or RSF and an SMSF is the potential for a more diversified portfolio. As each fund may invest in different assets and have different investment strategies, this could help to mitigate risks and potentially provide better returns. However, it’s important to note that managing multiple funds can also mean paying additional fees and administrative costs.

Another advantage of having an ISF or RSF is that they may be able to provide cheaper life insurance or Total and Permanent Disability (TPD) insurance than an SMSF. This is because ISFs and RSFs can purchase insurance policies in bulk, which can result in lower premiums for their members. In contrast, an SMSF may have to pay higher premiums for individual insurance policies.

Additionally, as a trustee of an SMSF, there are certain obligations that must be met. This includes complying with superannuation laws and regulations, ensuring investments are diversified and in the best interests of members, and maintaining accurate records and financial statements. Failing to meet these obligations could result in penalties and legal consequences.

Ultimately, the decision to have both an ISF or RSF and an SMSF will depend on individual circumstances and investment goals. Seeking professional financial advice before making any decisions is recommended to ensure that the best interests of the fund and its members are being met.