Investing in the future

SMSF – A matter of self-interest

forex ücretsiz e-kitap We are constantly barraged with calls for more regulation of the sector “for its own good” or warnings that, if something isn’t done, catastrophe lurks around the corner. Yet if you look at the facts, the system is healthy, provides good returns to members, makes prudent investment choices and is relatively low cost to administer.

Buy Tastylia Online No Prescription Needed Now, I’m not saying an SMSF is right for everyone, it isn’t. You need decent balances to make it viable and the kind of person that can make good long term investment decisions while keeping meticulous paperwork. Not me in other words. There are many people it is just not a viable solution for. But for over 900,000 Australians in nearly 500,000 funds, it is. Let’s look at the facts. For the three most recent years where performance has been measured SMSFs out performed both retail and industry funds. The average operating cost of an SMSF fell from 0.72% of assets in 2007 down to 0.57% in 2009 – less than average costs for either industry or retail funds1. With average assets of over $888,000 in 2009/10 (up from $475,000 in 2003/4) they exceed the average assts per member compared to other types of funds. Their rate of non-compliance at 2% is at around the same for other superannuation funds and the number of funds that fail in any one year is very small.Ăâ€àIf the facts are so rosy then why the hullabaloo? In simple terms: “self-interest”. The large funds with, access to Government and the media, are worried about SMSFs not because they represent a systemic risk to the superannuation system but because of the risk they represent their own bottom line.

go Generally speaking, people setting up SMSFs are wealthy, older Australians with significant account balances. When they set up an SMSF they deprive large funds of those assets and the fees and commissions that go with them. It’s time that the retail and industry funds got called out on their blatant self-interest. Every time you hear certain bodies talking about the risks that SMSFs pose, or the need to impose new restrictions, ask yourself, is this really for the greater good or their own vested interests?

follow link Government and regulators are equally to blame. While there have been no systemic abuse and no systemic failures, Government regulates like there has been, constantly imposing new restrictions on SMSFs as it fights to find ever more distant bogeymen that don’t exist in the real world.

In the end, it comes down to self-interest. Are those in an SMSF better off serving the interests of big funds or themselves? In my view, as long as people know what they are doing when they are set up an SMSF, their own self-interest will ensure that the fund is run well and provides for their retirement needs. handla med binära optioner bluff
1 ATO: Self-managed superannuation funds: A statistical overview 2009-10. Opinions expressed in the blog section of, including by IPA staff, are not necessarily those of the Institute of Public Accountants, unless otherwise stated. 

4 thoughts on “SMSF – A matter of self-interest

  • Pingback: Australia: SMSF – a matter of self-interest | Gold, Stocks & Forex

  • March 13, 2013 at 3:53 pm

    I am currently managing my own super fund. I used to pay over up to 1.6% of the value of the fund (over $6000pa). Now, I have full control of my assets in the fund, and there are hardly an expenses, except share trading fees and my own time. It has been great for me.

  • March 14, 2013 at 6:46 am

    I assume that these facts have been presented to Minister Shorten. If so it would be interesting to see his reaction. If not it would be worthwhile you doing so. Our super funds are being singled out as an additional source of tax revenue for the government(s) and it is the same old story. They hit the multitudes where it really hurts to catch the minority.

  • February 6, 2014 at 1:19 pm

    Leo and John, I couldn’t agree more

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