There has been much discussion of Self Managed Superannuation Funds (SMSFs) as a result of Sharemarket volatility and uncertainty with property values. The GFC has caused people to question the performance of their retail or union fund, which are often closely tied to major investment indices.
"The idea of a SMSF is for people to take control of their superannuation assets and manage the growth and protection themselves. So, what should the trustees invest in? Shares? Property? Collectables? Precious metals? This is the challenge for SMSF trustees, the “M” of SMSFs.
As with much of the investment world there are promoters offering dreams that are “too good to be true”. In reality the offers are good for the promoter but not necessarily the investor. These seminar driven promotions have entered the SMSF market, focusing on the ability to leverage superannuation fund investments. As with any investment, beware; take a deep breath and seek a second, or third opinion.
DIY Super’s director, Scott Amos says, “to protect your hard earned wealth and provide for retirement, it is vital for clients to seek professional and independent advice. If it is a great deal today, it will still be a great deal next week!”
A SMSF is not for everyone. There are considerable and often onerous obligations on trustees of a SMSF. “The need for professional assistance is, in my view, mandatory; not merely for compliance, but also for investment and succession planning”, says Mr Amos. But with diligent management and attention to compliance requirements, the SMSF can provide a far better and more flexible platform for self-funded retirees.
KMW Accountants, through its associated company DIY Super Pty Ltd, offer a comprehensive administration and compliance service to existing SMSFs, offers explanation and analysis for people considering setting up a SMSF, and provides a conduit to a panel of fully licenced Financial Planners.