A short name suits a Self-managed Super Fund much more than a long one and there is a good reason why it is so. If the names are long, it is likely that the bank accounts and the asset registers will cough up incomplete names. I can personally vouch knowing computer systems in banks which categorically deny registering long names.
In the world of Self-managed Super fund, a cross-insurance policy is one wherein an SMSF trustee takes out a policy over a member’s life with the clause to deduct premium from the account of another member. In being so, the cross-insurance policy benefits the member who has paid for the insurance in case of an insurance event arising.
The SMSF sector may lack prudential regulation, but the ATO compliance work amply ensures that it does not get astray. The ATO keeps a dual target in mind; it wishes to be an ally to all those who want to play by the rules but are ignorant about them as yet. And at the same time, the ATO also wants to come down hard on those who are deliberately breaking the rules assuming they will get away with it.
It is not to say that the days of the big Super funds are over, but there is certainly a pleasant chord struck between the Australian masses and the SMSFs, writes Miranda Brownlee in an article for the SMSF Adviser. We have certainly come to accord greater value with the SMSFs.
We are about to witness an explosion of retiring Baby Boomers and this is going to happen sometime pretty soon. It is not a smart economic commentary on the times we live in that most of these Baby Boomers are unprepared for their retirement. Men are faring just a little better than women and this can be put down to women’s higher life expectancy in particular.
In an article for the Business Day section of the Sydney Morning Herald, Ruth Liew talks about how SMSF has emerged to be the quickest growing sector of the Super market. Even as I write this, SMSF has amassed $557 billion in assets. SMSF contributes a mammoth 99% of the total number of Super funds, with nearly 30% of the cumulative Super assets placed in its kitty.
It may be too early to say that we are done with the conventional Super funds but by the look of it, we are surely getting increasingly enticed by the SMSFs. The industry has well and truly emerged as the fastest growing Superannuation sector. In fact, $557 billion out of the entire $1.9 trillion sounds to be some figure to boot home.
Many regulatory changes are lined up in the SMSF sector for the year 2015. They are many positive developments and potential challenges lying ahead, too. Only recently, the Financial System Inquiry has deemed fit to recommend that the borrowing structure for the limited recourse SMSF loans must be changed.