Latest News

Hot Issues
spacer
Hardly a do-it-yourself job
spacer
Super insurance: wide coverage, limited understanding
spacer
ASIC eyes SMSF loan sign-off
spacer
Redesigning retirement incomes policy - from the ground up
spacer
Industry terms
spacer
Market Update - August 2014
spacer
Keeping to super's sole purpose
spacer
Good financial planning finally has a value: 23% more in retirement
spacer
Taxing times for self-managed super funds
spacer
The relationship between SMSFs and their advisers
spacer
How family financial planning opened the door to a holistic advice career
spacer
Spotlight on your retirement income
spacer
Market Update - July 2014
spacer
Report reveals 'alarming' super savings stats
spacer
Anchors aweigh!
spacer
A retiree's choice: super pension or lump sum
spacer
Fundamentals for investing success
Article archive
spacer
Quarter 3 July - September 2014
spacer
Quarter 2 April - June 2014
spacer
Quarter 1 January - March 2014
spacer
Quarter 4 October - December 2013
spacer
Quarter 3 July - September 2013
spacer
Quarter 2 April - June 2013
spacer
Quarter 1 January - March 2013
spacer
Quarter 4 October - December 2012
spacer
Quarter 3 July - September 2012
spacer
Quarter 2 April - June 2012
spacer
Quarter 1 January - March 2012
spacer
Quarter 4 October - December 2011
spacer
Quarter 3 July - September 2011
spacer
Quarter 2 April - June 2011
spacer
Quarter 1 January - March 2011
Quarter 4 of, 2011 archive
spacer
Merry Christmas 2011
spacer
Few know exactly what their true financial position is, do you?
spacer
How much money do you need to comfortably retire?
spacer
The art of balancing bad news
spacer
How economic reality influences the market.
spacer
Market and Exonomic Updates - November / December 2011
spacer
Gender Gap
spacer
The 5 types of earnings per share
spacer
No more Star Trek conventions for Spock
spacer
An introduction to behavioural finance
spacer
Market Updates - September / October 2011
Hardly a do-it-yourself job

 

The term 'do-it-yourself super funds' is used much less these days as a catchy, shorthand way to describe ...

... self-managed superannuation funds. This is with good reason.

     

Do-it-yourself, of course, generally refers to doing tasks yourself without the assistance of a professional. Typically, these tasks are carried out around the home with varying degrees of success.
The ATO's deputy commissioner for superannuation, Stuart Forsyth, in a speech this month makes the point: "...SMSFs are far from 'do-it-yourself or 'set and forget'. To be run successfully, they require significant time, attention and expertise."

In fact, the vast majority of SMSF trustees receive some professional guidance ranging from administration services up to full financial planning.

Surveys for the April 2014 Self Managed Super Fund report - recently published by Vanguard and specialist researcher Investment Trends - found that:

  • Ninety per cent of SMSFs established in the past couple of years had used a professional or a specialist administration firm to setup their funds. For instance, 31 percent used an accountant followed by an SMSF administrator, 24 per cent; and a financial planner, 20 per cent. (Obviously, many professionals use SMSF administrators for their clients' self-managed funds.)
  • Accountants were administering an estimated 265,000 SMSFs in 2014 compared to specialist SMSF administration firms administering 150,000 funds and financial planners administrating 20,000 SMSFs in-house. (Almost 535,000 SMSFs were in existence at the end of June, according to APRA's latest quarterly superannuation report, released over the past week.)
  • Forty one per of SMSFs used a financial planner over the 12 months to April with 81 per cent receiving advice from various types of adviser.
  • 286,000 SMSFs have unmet advice needs and are willing to pay for that advice.

The findings of the Vanguard/Investment Trends SMSF report provide more compelling evidence why running a self-managed fund is not a do-it-yourself task for their trustees. And these findings may prompt more trustees to think about to best use professional advice.

Smart Investing last discussed SMSFs and advice on August 14 in The relationship between SMSFs and their advisers.

By Robin Bowerman
Smart Investing
Principal & Head of Retail, Vanguard Investments Australia
21st August 2014