The Four Types of Self-Managed Super Funds (SMSFs): Which One Are You Running?
- Chris Abbott
- Jun 23
- 2 min read
When it comes to building long-term wealth and protecting your family legacy, your choice of self-managed super fund (SMSF) structure could be your biggest advantage — or your biggest liability.
Unfortunately, too many Australians are unknowingly using the wrong kind of SMSF, missing out on essential protections, strategies, and benefits. Let’s break down the four types of SMSFs and explore why the Leading Member SMSF might just be the gold standard for serious wealth builders.
1. The DIY SMSF – The “Bunnings” Version
This is the most common setup among self-starters. It’s often patched together from online templates or basic accountant setups — but here's the danger: if you're doing it yourself without strategy, guidance, or a clear vision for the fund’s future, you're essentially playing with fire. These funds often lack succession planning, proper documentation, and compliance oversight.
🔴 Verdict: Cheap upfront, expensive in the long run. Avoid this if you want real family wealth protection.
2. The Adviser/Planner SMSF
Many financial planners or accountants set up SMSFs for clients using cookie-cutter models. While this seems safe on the surface, it's risky — especially when there’s only one member left standing (think: post-death scenarios or relationship breakdowns). Most advisers don’t specialise in SMSF succession, estate planning, or family protection law.
⚠️ Verdict: Better than DIY, but still leaves major holes — particularly in succession and member control.
3. The Family SMSF
This structure allows for up to six family members to be in one fund. It creates an ecosystem where:
Parents can support children’s wealth-building
Investment strategies can be tailored to each member
Fund expenses (like audits and admin) can be shared
Generational wealth strategies become actionable
💡 Verdict: Smart, flexible, and efficient — a solid option for families who plan together.
4. The Leading Member SMSF — The Royal Standard 👑
This is the Rolls Royce of SMSFs. Designed with succession, asset protection, and family governance at its core, the Leading Member SMSF empowers a central “leader” (usually the parent or wealth creator) to guide the fund and make strategic decisions for the benefit of bloodline family members.
It includes:
Long-term control mechanisms
Built-in estate and succession planning
Separation of investment strategies per member
Protection from ex-spouses, creditors, and taxation pitfalls
📘 Coming Soon: Turbocharging Your Super — my upcoming book dives deep into this strategy. Pre-register at GrantAbbott.com for early access.
Ready to Upgrade Your SMSF?
If your fund lacks structure, strategy, or a succession plan — it’s time for a change. Whether you’re just starting or have millions under management, choosing the right SMSF type can save you time, tax, and future family heartache.
👉 Book a strategy call or free demo now
Stay ahead of the curve. Protect your family. Supercharge your super.
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