The Financial System Inquiry (FSI) Report has made a few recommendations and the SMSF industry, one can say with conviction, is not all too happy with them. If Campbell Report in 1981 deregulated the financial market and Wallis report led to the setting up of APRA and ASIC in 1997, the FSI Report about SMSF lending may have the industry rushing for cover.
Author: Alan Preston Archives
Abundant Opportunities in the SMSF Products Market
Research throws up an interesting observation. As much as 84% of SMSF trustees do not have a life insurance cover and in numbers, they come up to about 630,000 couples. So there is definitely an opportunity waiting to be lapped up in the SMSF insurance world.
Top Concerns about SMSF Property Investment
Gearing being available as it is to them, SMSFs find it easy to lap up residential properties. This fact did not find favour with former Prime Minister Paul Keating. If his wishes were to be kept in mind, we would have had SMSFs barred from investing in residential real estate.
How to Make Your Money Work for You?
We give cash and shares the kind of recognition they deserve as an investment and only perhaps more at times. This said, the bonds often get overlooked and this is a cardinal mistake keeping in mind that bonds are the intermediary asset class, right between cash and shares. Bonds are closer to term deposits than shares, and there is a legal debt obligation related to bonds which make it difficult for companies to go volte-face on their ‘interest’ or ‘capital’ promise.
A Corporate Trustee is Much Needed for SMSF Succession
Smooth and seamless succession for a Self-managed Super Fund is quite possible. For some time, the industry has played around with many styles of doing so, but presently, we can say with a fair degree of conviction that we are there and that it can be done effectively. Before anything else, it is significant to have your estate planning in line with your SMSF succession.
Ban on SMSF Borrowing May Be a False Move
An article on the website The Adviser talks about the approach of two groups which have thrown brickbats at the Financial System Inquiry’s recommendation about banning SMSF borrowings. Both the financial groups feel that the recommendation is self-defeating in nature and may push back the SMSF sector by years.
