“I like to control all of my investments, so should I start a self-managed superannuation fund?”

Whoa-boy! Steady up Xers! You’re trying to move faster than Charlie Sheen when he’s “on the drug Charlie Sheen”.

Answer these important questions first. Do you have a minimum of $200,000 in super? Are you great (not just good) with paperwork? Can you stick to a plan, or calmly but quickly adjust your plan, when things move against you? You really need to tick all three boxes.

Most Gen Xers won’t have $200,000 in super yet, even if you’re combining your super with a spouse (which you can do in a SMSF). Older Xers, however, might have hit that target.

There’s no legal minimum to start a SMSF, but $200,000 is recommended because of the inescapable costs of SMSFs, including accounting, audit and government fees. Theses costs are several thousand dollars annually. And that’s before your own investment fees.

The responsibilities of being a SMSF trustee are significant. Sure, there’s paperwork, but more importantly, you must stay up to date with current laws. And, as trustee, you become the one to blame for, well, everything.

Most importantly, running a SMSF requires time. Hands up Gen Xer parents who have “spare” time? Anyone? Bueller? Bueller? Bueller?

SMSFs are incredibly powerful vehicles. They open the door to a world of investments and control not available through managed-fund super, such as direct property and gearing for shares and property.

None of that is to put you off. I love SMSFs! But many young people start SMSFs without understanding what they’re really getting themselves in for and regret it. Like a drunken photo posted on Facebook that you wish you hadn’t …

Bruce Brammall is the author of Debt Man Walking (www.debtman.com.au) and a licensed financial adviser.