While surveys may be skewed to an extent, they almost effectively summarise consumer sentiment. It then comes as disturbing news that fund executives and superannuation trustees (acting as survey respondents) believe that less than 30% of the SMSF members actually understand the life insurance cover they are being sold with their super fund.
SMSF is amongst the most sought-after routes of saving in the post-retirement nest. Its ability to diversify into cash funds, ETF and real estate have helped germinate quite a bit of trustee and member interest. It has also lapped up a few government initiatives in the way. This proves beyond doubt that the SMSF market will stay. But is it going to cost us dear in the long run?
Nearly 4% of the $543 billion held in SMSF investments has been poured into residential real estate. Commercial real estate can boast of roughly three times this figure. When we talk of a cumulative figure in excess of $80 billion, there is a need to be diligent about tracking your investments.
Come 1st of July 2014 and any employer with more than 20 employees under his belt will have to be really diligent in providing details of his superannuation contribution. SuperStream, also referred to as Data and Payment Standards, asks all the employers (passing the ’20 employee’ criterion) to pay super payments to their employees with the help of the government’s payment system.
People take the mortality equation in right earnest. They fear they may die prematurely and thus try ensuring in advance that everything falls in place when they are no more there. Quite surprisingly, many of us fail to explore the other spectrum of this assumption. What if we survive beyond our expectations? Have we adequately considered the longevity risk?
Based on the report of independent SMSF auditors, the Australian Taxation Office (ATO) furnishes a list of major compliance mistakes which SMSF trustees commit each year. It is a befitting exercise for a country that needs stringent regulation to govern about half a million SMSF funds in existence.
The number of people believing that the SMSF is a powerful way of consolidating investments is on a rise. This is not surprising because even the fiercest critics (any new idea arrives with its fair share of detractors) have now warmed up to the many advantages presented by Self Managed Superannuation Funds (SMSF). Let me waste no time in taking you through 4 such benefits.
Self Managed Super Fund (SMSF), when compared to its peers like retail or industry funds, offers greater degree of choice and control. For some time now I have been a lobbyist of SMSF and I have firm reasons to back it. In time, I expect to be vindicated. I don’t mean for a moment that SMSF has not drawn its fair share of brickbats from conservative readers of the game but then even they are warming up to it now. Before I establish why you should invest in SMSFs, let me give you a brief overview of what it is and when can it represent your true interest.