The self-licensed planning firm’s CEO said recent figures from the Australian Tax Office and SMSF Professionals’ Association should are a worrying sign – particular the SPAA finding that an additional 1.4 million people are considering setting up an SMSF.
“This will mean the number of self managed retirees will swell to almost 2.5 million,” Mr Kearns said.
“Is it likely that all these people will have the knowledge, experience and time needed to manage their SMSF effectively?
“In my view, this could create a number of problems for the individuals and the government, who may end up financially supporting these people down the track.”
Mr Kearns said the government needs to provide more education to prospective SMSF trustees.
5 stocks – good luck
Presumabaly 30 years ago your 5 stocks would have been CSR, Boral, Pac Dun, Burns Philp and Wattyl as these were blue chip for their day.
Green – Given that CBA & TLS were not around much before 2000 that is difficult. Nonetheless, I have SMSF’s still with CBA first float (1996?) who have consistently done DRP’s since.
And why those 5 stock? Lets face it 90% of all managed funds have these stock as their base.
“SMSf will be way ahead” …… of what?
but as a member of the arisotcracy Lord Stockton you have good money making genes. Must look those stocks up. doubt mnay of the proletariat would have the insight to have any of these in a long term portfolio, so your clients would be way ahead of the pack as you say.
Out of interest what was your pre-2000 strategy?
Same 5?
Mathew, As a CA handling SMSf’s for 20 +years , Put 20% into each of BHP CBA ANZ TLS RIO back in 2000 & each year since. I can assure you the SMSf will be way ahead. As for putting “tax effective” gum trees into a SMSF is plainly stupid particularly if you want a tax deduction. If you are saying ‘tax effective’ deals are a dud investment, I agree. Could be why not one of my SMSF’s have ever bought the products.
So John what you are saying is investment advice for SMSFs should be left to accountants right? The same people that made clients heaps of money investing in gum trees, emu farms, almonds and other quality tax advantaged investment flogged by accountants? Come speak to some of my clients to see how happy they are with their accountant’s advice, which by the way is never written or disclosed in anyway.
The old “protecting the public interest” argument to achieve change is college text book stuff Phil.
So what you really mean is that SMSFs are just too hard for you to make a dollar out of?
Perhaps you have realised that accountants are the only ones with the qualifications and expertise to deal with SMSFs.
Why dont you just concentrate on your “pin the tail on the donkey” investment selection. Thats how financial planners do it isnt it? Pick the top 5 managed funds off a screen?
All SMSFs need is a bank, a stockbroker and a real estate agent if they want one.
Accountants who are SMSF specialists are smart enough to refer their clients to a decent superannuation lawyer for their estate planning and an insurance adviser where required. It’s not as hard or expensive as FP’s make it out to be.
Leave the SMSFs to the professionals. We know what we are doing.
Thats a fact, ive had some absolutely ridiculous requests from clients and potential clients.
Especially on the borrowing side.
They just see this pile of money and think they can do what ever they wish.
Another quality press release from a financial services stakeholder. Lame attempt to use a name to try and drum up some business. Would you go and seek advice from this firm after such flimsy comments around the growth and alleged supposed potential pitfalls of SMSF? Move along..